15 Best Natural Gas and Oil Dividend Stocks to Buy Now

Industry Overview - The oil and gas industry paid $166.2 billion in dividends last year, a significant increase from $118.9 billion in 2018 [2] - High volatility in the global oil sector and a bleak future demand outlook are challenging the sustainability of such high dividend payouts [2] Market Trends - A growing number of oil and gas companies are implementing cost-cutting measures and seeking alternative revenue sources, with liquefied natural gas (LNG) demand expected to grow by around 60% by 2040 [3] Company Highlights - Civitas Resources, Inc. (NYSE:CIVI) has increased its share repurchase authorization to $750 million, representing about 28% of its market cap, and plans to allocate 50% of its free cash flow after the base dividend to share buybacks annually [7][8] - Civitas Resources, Inc. has experienced a share price decline of over 35% since the beginning of 2025 due to macroeconomic concerns and OPEC's production decisions [9] - Cenovus Energy Inc. (NYSE:CVE) announced a C$7.9 billion acquisition of MEG Energy, which has faced controversy but has received board endorsement [10] - Cenovus Energy Inc. returned $819 million to shareholders through dividends and share buybacks in Q2 2025, with a share price increase of over 21% in the last six months [11] - Shell plc (NYSE:SHEL) announced a $3.5 billion share buyback program and declared an interim dividend of $0.358 per share, maintaining a rolling shareholder distribution of 46% of its cash flow from operations [13][14] - Shell plc has achieved $3.9 billion in structural cost reductions since 2022, aiming for $5 billion to $7 billion by the end of 2028 [14]