• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

3 oil stocks paying dividends

The Mad Money host notes that when sellers start selling oil stocks, buyers would come in and keep the prices up. And that makes the sector stand out compared to the rest of the market.

“Prices are going higher at the pump, and nobody but the president can do anything about it — and even he can’t do all that much,” he explains. “Either way, the lesson is simple: Just get long on some oil stock.”

So here’s a look at three stocks from the sector that Wall Street finds attractive. What's more, they pay healthy dividends.

Trading Tips for All Levels: Avoid These 5 Expensive Mistakes

Don't let costly errors derail your trading success. Learn about the five most expensive mistakes in options trading and how to avoid them, whether you're just starting out or have years of experience. Enhance your trading strategy today and stay ahead of the game!

Learn More

Exxon Mobil (XOM)

Let’s start with one of the largest blue-chip stocks in the energy space: Exxon Mobil.

Thanks to strong commodity prices, the oil-producing giant gushes profits and cash flow. In Q1, Exxon earned $5.5 billion in profits, a huge increase from the $2.7 billion in the year-ago period. Free cash flow totaled $10.8 billion for the quarter, compared to $6.9 billion in the same period last year.

Solid financials allow the company to return cash to investors. Exxon pays quarterly dividends of 88 cents per share, translating to an annual yield of 3.4%. Management has also increased the company’s share repurchase program to up to $30 billion through 2023.

On Tuesday, Evercore ISI analyst Stephen Richardson upgraded Exxon from ‘in line’ to ‘outperform’ and set a price target of $120 — implying potential upside of 15%.

Enterprise Products Partners (EPD)

Moving up the yield ladder we have Enterprise Products Partners, which operates approximately 50,000 miles of natural gas, natural gas liquid (NGL), crude oil, refined products, and petrochemical pipelines.

Structured as a master limited partnership, EPD pays oversized cash distributions to investors and grows them over time. Right now, the stock yields a generous 6.5%.

The partnership is outearning its payout. In Q1, EPD generated record distributable cash flow of $1.8 billion, which provided 1.8 times coverage of its quarterly distribution.

After EPD reported Q1 results, Mizuho analyst Gabriel Moreen reiterated a Buy rating on the stock and raised the price target from $30 to $32 — roughly 12% above where the stock sits today.

Follow These Steps Once Your Portfolio Reaches $150K

If you've amassed a $150k+ portfolio, it's time to meet with a trusted advisor. Zoe Financial helps you connect with fiduciary advisors to grow your wealth. Find, hire, and invest with vetted financial advisors tailored to your unique situation.

With Zoe Financial, find your top 3 advisor matches, book a free initial consultation, and pick your favorite advisor.

Get Started

Magellan Midstream Partners (MMP)

Magellan Midstream is another high-yield master limited partnership well-positioned for this commodity cycle.

Magellan has 9,800 miles of refined products pipelines, 54 connected terminals, and two marine storage terminals. It also owns around 2,200 miles of crude oil pipelines and storage facilities with an aggregate storage capacity of approximately 39 million barrels.

The partnership pays quarterly distributions of $1.0375 per unit, giving the stock an enticing annual yield of 7.8%. Management expects Magellan to generate enough cash to cover its payout 1.24 times this year.

Last month, JPMorgan analyst Jeremy Tonet upgraded Magellan from neutral to overweight. He also raised the price target to $57 — around 8% higher than the current levels.

More: Jim Cramer's 7 rules for investors


This 2 Minute Move Could Knock $500/Year off Your Car Insurance in 2024

Saving money on car insurance with BestMoney is a simple way to reduce your expenses. You’ll often get the same, or even better, insurance for less than what you’re paying right now.

There’s no reason not to at least try this free service. Check out BestMoney today, and take a turn in the right direction.

Jing Pan Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.


The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.