Energy Stocks Got Crushed by Tariff Selling: Buy These 4 High-Yield Dividend Giants Right Now

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Investors love dividend stocks, especially high-yield companies in the energy sector, because they offer a significant income stream and have substantial total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. Let’s take a closer look at the concept of total return. Imagine you purchase a stock at $20 that offers a 3% dividend. If the stock price rises to $22 within a year, your total return is 13%. This is calculated by adding the 10% increase in stock price to the 3% dividend.

So far in 2025, we have already witnessed a 20% market correction after two years of 20% gains for the S&P 500. And the selling may not be over. Large-cap integrated oil giants are trading at some of the most affordable levels in years, offering reliable and increasing dividends. Investors have realized significant gains in the Magnificent 7 stocks, which are way down from their highs, down over 20% from the group’s highs. It makes sense to look at some of the top energy companies that will be around in the future.

We screened our 24/7 Wall St. energy dividend stock research database for mega-cap integrated energy stocks that pay substantial and dependable dividends. We found four, and all look to have significant upside potential to the posted target prices at some of the top Wall Street firms with Buy ratings on the shares.

Why do we cover large-cap energy dividend stocks?

Energy dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

BP

This is one of the oil and gas “supermajors” and one of the world’s largest companies, as measured by revenues and profit. BP PLC (NYSE: BP) engages in the energy business worldwide.

It operates through four segments:

• Gas & Low Carbon Energy
• Oil Production & Operations
• Customers & Products
• Rosneft

BP produces and trades natural gas, offers biofuels, operates onshore and offshore wind and solar power generating facilities, and provides de-carbonization solutions and services, such as hydrogen and carbon capture, usage, and storage.

The company is also involved in the convenience and mobility business, which manages the sale of fuels to:

• Wholesale and retail customers
• Convenience products
• Aviation fuels
• Castrol lubricants
• Refining, supply, and trading of oil products
• Operation of electric vehicle charging facilities

In addition, it produces and refines oil and gas and invests in upstream, downstream, and alternative energy companies, advanced mobility, bio and low-carbon products, carbon management, digital transformation, and power and storage areas.

Chevron

This American multinational energy corporation predominantly specializes in oil and gas. This integrated giant is a safer option for investors looking to position themselves in the energy sector and pays a substantial dividend, which was recently raised by 5%. Chevron Corp. (NYSE: CVX) operates integrated energy and chemicals businesses worldwide through two segments.

The Upstream segment is involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas
• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
• Transportation of crude oil through pipelines, and transportation, storage
• Marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

• Refining crude oil into petroleum products
• Marketing crude oil, refined products, and lubricants
• Manufacturing and marketing renewable fuels
• Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car
• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.

Chevron announced in late 2023 that it had entered into a definitive agreement with Hess to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion. The Federal Trade Commission approved the deal in October, and it is expected to close soon.

Jefferies has a Buy rating and set a price target objective at $197.

Exxon Mobil

Exxon Mobil Corp. (NYSE: XOM) manages an industry-leading portfolio of resources and is one of the world’s largest integrated fuels, lubricants, and chemical companies. Consistent oil benchmark pricing near and above the $60 a barrel level offers investors an excellent entry point into this energy behemoth superstar. Exxon explores for and produces crude oil and natural gas in:

• The United States
• Canada
• South America
• Europe
• Africa
• Asia
• Australia/Oceania

Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene, polypropylene plastics, and specialty products. Additionally, the company transports and sells crude oil, natural gas, and petroleum products.

Top Wall Street analysts expect Exxon to remain a key beneficiary in a stable oil price environment. Most remain very optimistic about the company’s sharp positive inflection in its capital allocation strategy, upstream portfolio, and leverage, which will further drive demand recovery. Exxon also offers greater downstream/chemicals exposure than its peers.

The company completed its purchase of oil shale giant Pioneer Natural Resources in May 2024 in an all-stock transaction valued at $59.5 billion. The deal created the largest U.S. oilfield producer and guaranteed a decade of low-cost production.

Shell

This British multinational oil and gas company is headquartered in London. The foreign energy giant offers investors big upside potential. Shell PLC (NYSE: SHEL) operates as an energy and petrochemical company in Europe, Asia, Oceania, Africa, the United States, and the Rest of the Americas.

The company operates through six segments:

• Integrated Gas
• Upstream
• Marketing
• Chemicals and Products
• Renewables
• Energy Solutions

It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure to deliver gas to market.

The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, and carbon-emission rights; and markets and sells LNG as a fuel for heavy-duty vehicles.

In addition, it trades in and refines crude oil and other feedstocks, such as:

• Low-carbon fuels
• Lubricants
• Bitumen
• Sulphur
• Gasoline
• Diesel
• Aviation and marine fuel
• Produces and sells petrochemicals for industrial use
• Manages oil sands activities

Furthermore, the company produces base chemicals, including ethylene, propylene, aromatics, and intermediate chemicals such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol.

Shell also generates electricity through wind and solar resources, produces and sells hydrogen, and provides electric vehicle charging services.

Three Stocks Trading Under $10 That Deliver Massive Ultra-High-Yield Dividends

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