2 No Brainer Energy Dividend Stocks to Buy As Oil Tops $100
Key Points
ExxonMobil’s decades-long dividend growth record, cash-flow coverage, and its production/cost moves help keep its payout dependable.
Chevron’s higher yield is backed by record free cash flow and production growth, plus its long dividend streak shows durability across downturns.
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ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX) are two of the largest dividend-paying companies in the energy sector, and both have demonstrated resilience across oil price cycles.
WTI crude has surged from $66.96 on February 27 to effectively $100 a barrel today (currently sitting at $99, and shifting daily). This sharp rally directly benefits both companies' free cash flow. But the real story is not the oil price. It is that both companies already proved their dividends are safe at much lower prices.
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ExxonMobil: 43 years and counting
Exxon's dividend streak stands at 43 consecutive years of annual increases. The current quarterly payout is $1.03 per share, and the stock yields 2.64% at the current price of $156.
The dividend is well-covered. Full-year 2025 operating cash flow came in at $52 billion against a dividend payout of $17.2 billion -- coverage of roughly 3x from operations alone. Even in 2020, when oil collapsed and Exxon posted a net loss of $22 billion, the company maintained its dividend. That is the stress test that matters.
Production is the structural catalyst. Exxon hit a record 4.7 million oil-equivalent barrels per day in 2025, the highest in over 40 years, with the Permian Basin alone delivering 1.8 million boed in Q4. The company has also locked in $15.1 billion in cumulative structural cost savings since 2019, targeting $20 billion by 2030. That cost base makes the dividend durable at lower oil prices, not just at current levels.
Exxon's Q4 2025 EPS of $1.71 beat the $1.66 estimate, and the company repurchased $20 billion in shares in 2025 with another $20 billion planned through 2026.
Chevron: Record production, 39-year streak
Chevron's dividend yield of 3.6% is higher than ExxonMobil's 2.6% yield. The quarterly payout rose to $1.78 per share in Q1 2026, extending a streak of 39 consecutive annual increases.
Full-year 2025 free cash flow hit $16.60 billion, a record, while total shareholder returns reached $27.10 billion. Worldwide production grew 12% year-over-year to 3,723 MBOED, also a record.
Both stocks are up roughly 30% year-to-date. Both companies have maintained dividend growth through multiple oil price downturns, including the 2020 collapse.
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Austin Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.
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