14 Best Oil and Gas Dividend Stocks to Buy Right Now

Industry Overview - The global oil and gas industry is experiencing significant disruptions due to ongoing tensions in the Middle East, particularly with Iran's military responses leading to the suspension of operations at major oil and gas facilities by Gulf producers [1][2] - The Strait of Hormuz, a critical passage for over 20% of global oil and LNG supply, has been closed by Iran, exacerbating supply concerns [1][2] Oil Price Movements - Oil prices have surged to their highest levels in over two years, with Brent crude trading above $93 per barrel, and projections suggest prices could reach $150 per barrel if the conflict persists [2] - The average gas price in the US has also risen to $3.32 per gallon, the highest since 2024, although political leaders express confidence that prices will stabilize post-conflict [3] Dividend Stocks Analysis - The article identifies the best oil and gas dividend stocks, focusing on those with significant hedge fund interest and a minimum annual dividend yield of 2.5% as of March 5, 2026 [5][6] - California Resources Corporation (NYSE:CRC) reported a 25% increase in net production year-over-year, reaching 138,000 barrels of oil equivalent per day, and generated $543 million in free cash flow, allowing for a $430 million increase in its share repurchase program [9][10][11] - Patterson-UTI Energy, Inc. (NASDAQ:PTEN) saw a price target increase from Goldman Sachs, reflecting confidence in its fundamentals despite geopolitical challenges, and reported $416 million in adjusted free cash flow for FY 2025 [12][13][15] - Chord Energy Corporation (NASDAQ:CHRD) received a price target increase from UBS, indicating a potential upside of over 17%, supported by the ongoing geopolitical tensions [16][17][18] - ONEOK, Inc. (NYSE:OKE) faced a downgrade in growth expectations despite a price target increase, with analysts questioning its ability to grow without favorable commodity conditions [19][20][21] - Suncor Energy Inc. (NYSE:SU) reported a nearly 4% increase in production year-over-year and announced a share repurchase plan of C$3.3 billion for 2026, maintaining a robust dividend yield of 3.07% [22][24][25] - HF Sinclair Corporation (NYSE:DINO) is undergoing leadership changes amid concerns regarding its disclosure processes, which may impact investor sentiment [26][27][28] - BP p.l.c. (NYSE:BP) has seen a price target increase due to strong valuation support amid the ongoing conflict, with potential for oil prices to exceed $100 per barrel if the Strait of Hormuz remains closed [29][31][32] - Permian Resources Corporation (NYSE:PR) reported record operational metrics and a 20% increase in adjusted free cash flow, allowing for a 7% increase in its quarterly dividend [33][34][36] - EOG Resources, Inc. (NYSE:EOG) is targeting a free cash flow of approximately $4.5 billion in 2026, benefiting from rising oil prices due to geopolitical tensions [37][39][40]