These 3 Top Oil Dividend Stocks Just Gave Their Investors Another Raise

Core Viewpoint - The oil industry is currently providing attractive dividend income opportunities, with several companies increasing their dividends, notably Devon Energy, Occidental Petroleum, and Chevron, making them appealing options for investors seeking dividend stocks [1][12]. Group 1: Devon Energy - Devon Energy has raised its quarterly fixed dividend by 9% to $0.24 per share, resulting in a 2.5% dividend yield, significantly higher than the S&P 500's yield of 1.2% [2]. - The company has been paying an additional variable dividend since its merger with WPX Energy in 2021, which peaked at $1.55 per share in 2022 [3]. - Recently, Devon has prioritized share buybacks over variable dividends, repurchasing $1.1 billion in stock last year as part of $2 billion returned to shareholders [4]. Group 2: Occidental Petroleum - Occidental Petroleum has also increased its quarterly dividend by 9% to $0.24 per share, yielding 1.9% at a stock price of $50 [5]. - The company had previously cut its dividend from $0.79 to $0.01 per share in 2020 due to the pandemic, but has been steadily rebuilding it since then [6]. - Occidental has made significant progress in debt repayment, retiring $4.5 billion in debt ahead of schedule and selling $1.2 billion in assets to further reduce debt, allowing for potential future dividend increases [7]. Group 3: Chevron - Chevron has raised its quarterly dividend by 5% to $1.71 per share, yielding 4.4% at a stock price of around $157 [8]. - This marks the 38th consecutive year of dividend increases for Chevron, which has outpaced the S&P 500 in dividend growth over the past five years [9]. - The company generated $15 billion in free cash flow last year, covering its $11.8 billion dividend outlay, and returned a record $27 billion to shareholders through dividends and buybacks [10]. - Chevron maintains a strong balance sheet with a leverage ratio of 10.4% and expects to add $10 billion to its annual free cash flow by 2026, supporting future dividend growth [11]. Group 4: Investment Outlook - Devon Energy, Occidental Petroleum, and Chevron are all positioned to continue raising their dividends as they generate cash [12]. - Among these, Chevron is highlighted as the best dividend stock due to its higher yield, consistent growth, and strong financial profile [13].