Core Viewpoint - The article discusses the best Fortune 500 dividend stocks to invest in, highlighting the strong performance of global equities in 2025 and the importance of staying power in the market moving forward [1]. Market Performance - The MSCI All Country World Index rose over 21% in 2025, reaching a record level of 1,024 on December 26 [2]. - In the US, stock gains were primarily driven by earnings growth linked to artificial intelligence and steady consumer demand, with the S&P 500 and NASDAQ reaching new highs despite concerns about a potential AI bubble [3]. - Heavy capital spending by technology and infrastructure-related companies significantly contributed to the rise of US stocks, even as valuations exceeded historical norms [4]. Future Outlook - Looking ahead to 2026, expectations remain positive but cautious, with Goldman predicting continued earnings growth supported by AI investment and a favorable monetary environment, while also warning of elevated valuations and market concentration [5]. - State Street emphasized the need for selectivity in investment as markets may react more sharply to earnings results and policy changes [5]. Dividend Stocks Methodology - The article outlines a methodology for selecting the best dividend stocks, focusing on companies with an annual dividend yield over 2% as of December 31 and popularity among hedge funds at the end of Q3 2025 [8]. Company Highlights - **Phillips 66 (NYSE:PSX)**: - Dividend yield of 3.70% with 47 hedge fund holders [11]. - Approved a $2.4 billion capital budget for 2026, focusing on midstream natural gas liquids and higher-return refining projects [13]. - Completed acquisition of WRB Refining, enhancing crude processing flexibility [14]. - **The Kroger Co. (NYSE:KR)**: - Dividend yield of 2.23% with 55 hedge fund holders [16]. - Approved an additional $2 billion for share repurchases, adding to a previous $7.5 billion program [17]. - Faced intensified competition and has been adjusting its business strategy, including cost reductions and changes in e-commerce partnerships [19].

Core Insights - Exxon Mobil Corporation (XOM) has reported significant gains in its refining business, driven by strong refining margins, which have supported earnings growth in the third quarter [1][9]. Refining Business Performance - Refining margins have strengthened due to lower crude prices and tighter product supply caused by refinery outages and supply chain disruptions [2][9]. - The company is focusing on high-grading its refinery network and investing in high-quality sites with lower costs and diverse product offerings, resulting in fewer but more efficient refineries [2][4]. Upgrading Refinery Output - ExxonMobil is investing in upgrading its refineries to convert low-value products into high-value products, exemplified by the Singapore CRISP project, which transforms low-value residues into profitable products like lubricant base stocks and diesel [3][9]. Competitors in the Refining Sector - Phillips 66 (PSX) and Valero Energy Corporation (VLO) are also benefiting from strong refining margins, with PSX achieving a 99% crude utilization rate in Q3, the highest since 2018 [5][6]. - Valero Energy operates 15 refineries with a combined throughput capacity of 3.2 million barrels per day, allowing it to cater to diverse market needs [7]. Stock Performance and Valuation - ExxonMobil's shares have increased by 12.4% over the past six months, outperforming the industry average increase of 11.2% [8]. - The company trades at a trailing 12-month EV/EBITDA of 7.85X, above the industry average of 4.88X [10]. Earnings Estimates - The Zacks Consensus Estimate for ExxonMobil's 2025 earnings has been revised upward over the past 30 days, indicating positive sentiment [11].

With a market cap of $50.3 billion, Valero Energy Corporation (VLO) is a global energy company that manufactures, markets, and sells petroleum-based and low-carbon transportation fuels and petrochemical products. Headquartered in San Antonio, Texas, it operates through Refining, Renewable Diesel, and Ethanol segments. The San Antonio, Texas-based company is set to deliver its fiscal Q4 2025 results before the market opens on Thursday, Jan. 29. Ahead of this event, analysts forecast VLO to report an adjus ...

Core Insights - Par Pacific Holdings, Inc. (PARR) is positioned favorably in the refining sector, with a refining capacity of 219,000 barrels per day and operations in Hawaii and the Pacific Northwest [2] - The refining environment in 2025 has significantly improved, with U.S. refining margins rising due to supply constraints and increased demand for distillate fuels, leading to a substantial increase in PARR's earnings [3] - The company reported third-quarter 2025 refining earnings of $340.8 million, a dramatic rise from $19 million in the same quarter of 2024 [3] Industry Overview - The refining sector has experienced a boost in earnings in 2025, supported by strong refining margins driven by maintenance and outages, as well as growing demand [3] - Geopolitical tensions and sanctions are contributing to a positive market outlook for refining companies, including PARR, in the fourth quarter [4] Company Performance - PARR is expected to continue benefiting from a supportive refining environment in Q4, with strong margins influenced by geopolitical disruptions and seasonal demand for distillates [4][10] - The company's stock has surged 116.1% over the past year, outperforming the industry average of 15.3% [9] Valuation Metrics - PARR's current valuation stands at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 4.45X, slightly above the industry average of 4.36X [11] - The Zacks Consensus Estimate for PARR's 2025 earnings has seen downward revisions recently, indicating potential volatility in future earnings expectations [12]

That shows up in crack behavior. In a normal year, diesel cracks widen in the winter as logistics and heating demand overlap.Unlike gasoline, where weak consumer sentiment can soften demand, diesel consumption in late December is tied to physical throughput. Packages still move even if margins are thin. Missed deliveries turn quickly into lost sales, spoiled inventory, contractual penalties, and reputational damage. The demand is locked in by calendar and contracts, not price.Christmas matters because diese ...

Investing in small refiners can be a risky endeavor. In a moment, margins are healthy. Those same margins can quickly shift to below break-even levels. This is a common theme among small refiners who struggle to stayI am a Licensed Professional Engineer who works in the Nuclear Power industry. I use my professional working knowledge of the power/energy industries to aid in evaluating potential equities worthy of long-term investment. I invest in income producing equities and rental real estate properties fo ...

Group 1: Oil Price Outlook - The U.S. Energy Information Administration (EIA) projects the average spot price of West Texas Intermediate crude to decline to $51.42 per barrel in 2026, down from $65.32 per barrel in 2023 and $76.60 per barrel in 2022, due to rising worldwide oil inventory [2] - Low oil prices are expected to benefit the refining industry, as companies can process cheaper raw crude into final products like gasoline and diesel, enhancing refining operations in 2026 [3] Group 2: Operational Efficiency and Cost Management - Advanced drilling techniques such as horizontal drilling and hydraulic fracturing have significantly reduced operational costs in oil and gas, leading to low break-even costs for exploration and production activities, making them potentially profitable despite low oil prices [4] - Demand for oilfield services is anticipated to remain favorable in 2026, benefiting companies that assist upstream operations [4] Group 3: Investment Opportunities - Phillips 66 (PSX) is highlighted as a leading refiner with a crude utilization rate of 99% in the September quarter of 2023, the highest since 2018, and is well-positioned to capitalize on lower oil prices by using Canadian heavy crude [5][6] - Valero Energy Corporation (VLO) operates 15 refineries with a combined capacity of 3.2 million barrels per day and focuses on maximizing profits through efficient refinery utilization and selective investments, also expected to benefit from low input costs [6][7] - Oceaneering International (OII) provides robotic solutions and services to offshore energy companies and is well-positioned to gain from favorable oilfield service demand and growth in its Aerospace and Defense (ADTech) business in 2026 [8][9]

Core Insights - Phillips 66 (PSX) completed the acquisition of the remaining 50% interest in WRB Refining LP on October 1st, enhancing its presence in the Mid-Continent region and reducing operational risks [1]. Group 1 - The acquisition strengthens Phillips 66's position in the refining sector, particularly in the Mid-Con area [1]. - This strategic move is expected to lower operational risks associated with the company's refining operations [1].

Core Insights - Phillips 66 (PSX) completed the acquisition of the remaining 50% interest in WRB Refining LP on October 1st, enhancing its presence in the Mid-Continent region and reducing operational risks [1]. Group 1 - The acquisition strengthens Phillips 66's position in the refining sector, particularly in the Mid-Con area [1]. - This strategic move is expected to lower operational risks associated with the company's refining operations [1].

Key Takeaways PARR trades above industry valuation but outperformed peers with a 42.2% stock gain in six months.PARR benefits from soft WTI prices, as lower crude costs support margins at its refining network.PARR's diverse crude sourcing, including cheaper Canadian heavy oil, adds cost flexibility.Par Pacific Holdings Inc (PARR) is currently considered overvalued, trading at a 4.76x trailing 12-month enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA), which is a ...