If Iran’s Nuclear Sites Are Attacked Oil Will Skyrocket – Grab These High-Yield Energy Giants Now

Major media outlets announced this week that new intelligence suggests that Israel is preparing to strike nuclear facilities in Iran. This new information comes as President Trump has been working to secure an agreement with Iran over their nuclear program. Needless to say, published reports indicate that the Israeli embassy in Washington, D.C., as well as the Prime Minister and the military, had no comment to offer. In addition to negating Iran’s ability to have a nuclear weapon, Israel has been forceful over the years against the regime, as Iran has historically provided support to both Hamas and Hezbollah.  One thing is for sure: if they do launch air strikes against Iran’s nuclear facilities, oil output from the country could be cut off, and the oil benchmarks could skyrocket.

24/7 Wall St. Key Points:

• While oil has rallied off the recent lows, it is still at levels not seen since 2021
• The major integrated exploration & production stocks pay big dividends
• OPEC is increasing production after cutting output for years
• Do you have large-cap high-yield energy dividend stocks in your portfolio? Why not schedule a meeting with a financial advisor near you for a comprehensive review? Click here to get started today (Sponsored)

While the energy sector has faced challenges so far this year, global energy demand surged in 2024, as advanced economies rebound from several years of decline and emerging market and developing economies also experience notable increases. With electricity demand soaring due to the increasing demand for Artificial Intelligence capabilities at data centers and cryptocurrency mining, and natural gas helping to supply utility companies, all of the major oil giants are expected to help fill the gap.  That, combined with the peak use summer driving months right around the corner, makes the large-cap dividend energy giants a solid buy now.

We screened our 24/7 Wall Street energy research database to identify companies with high-yield dividends, reasonable entry points, and Buy ratings from top Wall Street firms that we cover. Four solid stocks have appeared on our screens, and all are ideal options for growth and income investors now.

Why do we cover high-yield energy dividend stocks?

Energy dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

BP

BP p.l.c. is one of the oil and gas “supermajors” and one of the world’s largest companies, as measured by revenues and profit. BP p.l.c. (NYSE: BP) engages in the energy business worldwide.

It operates through four segments:

• Gas & Low Carbon Energy
• Oil Production & Operations
• Customers & Products
• Rosneft

BP produces and trades natural gas, offers biofuels, operates onshore and offshore wind and solar power generation facilities, and provides decarbonization solutions and services, including hydrogen production, carbon capture, and carbon storage.

The company is also involved in the convenience and mobility business, which manages the sale of fuels to:

• Wholesale and retail customers
• Convenience products
• Aviation fuels
• Castrol lubricants
• Refining, Supply, and trading of oil products
• Operation of electric vehicle charging facilities

In addition, it produces and refines oil and gas, and invests in upstream, downstream, and alternative energy companies, as well as advanced mobility, bio, and low-carbon products, carbon management, digital transformation, and power and storage areas.

Raymond James has an Outperform rating with a $37 target price.

Chevron

Chevron Corporation is an American multinational energy corporation predominantly specializing in oil and gas. This integrated giant is a safer option for investors looking to position themselves in the energy sector and pays a substantial dividend, which was recently raised by 5%. Chevron Corporation (NYSE: CVX) operates integrated energy and chemicals businesses worldwide through its subsidiaries.

The company operates in two segments:

• Upstream
• Downstream

The Upstream segment is involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas
• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
• Transportation of crude oil through pipelines, and transportation, storage
• Marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

• Refining crude oil into petroleum products
• Marketing crude oil, refined products, and lubricants
• Manufacturing and marketing renewable fuels
• Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car
• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.

Chevron Corporation announced in late 2023 that it has entered into a definitive agreement with Hess Corporation (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion. The Federal Trade Commission approved the deal in October, and it is expected to close soon.

Piper Sandler has an Overweight rating and set a price target objective at $162.

Exxon Mobil

ExxonMobil manages an industry-leading portfolio of resources and is one of the world’s largest integrated fuels, lubricants, and chemical companies. With consistent oil benchmark pricing near and above the $70 level, this presents investors with an excellent entry point into this energy behemoth. Exxon Mobil Corporation (NYSE: XOM) is the world’s largest international integrated oil and gas company, exploring for and producing crude oil and natural gas in:

• The United States
• Canada
• South America
• Europe
• Africa
• Asia
• Australia/Oceania

ExxonMobil also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene, and polypropylene plastics, as well as specialty products. Additionally, the company transports and sells crude oil, natural gas, and petroleum products.

Top Wall Street analysts expect ExxonMobil to remain a key beneficiary in a stable oil price environment. Most remain very optimistic about the company’s sharp positive inflection in its capital allocation strategy, upstream portfolio, and leverage, which will further drive demand recovery. ExxonMobil also offers greater Downstream/Chemicals exposure than its peers.

The company completed its purchase of oil shale giant Pioneer Natural Resources Company in May 2024 in an all-stock transaction valued at $59.5 billion. The deal created the largest U.S. oil field producer and guaranteed a decade of low-cost production.

UBS has assigned a Buy rating with a target price of $131.

Shell plc

Shell plc is a British multinational oil and gas company headquartered in London, England. This foreign energy giant offers investors big upside potential. Shell plc (NYSE: SHEL) operates as an energy and petrochemical company in Europe, Asia, Oceania, Africa, the United States, and the Rest of the Americas.

The company operates through six segments:

• Integrated Gas
• Upstream
• Marketing
• Chemicals and Products
• Renewables
• Energy Solutions

It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure to deliver gas to market.

The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, and carbon-emission rights, and markets and sells LNG as a fuel for heavy-duty vehicles.

In addition, it trades in and refines crude oil and other feedstocks, such as:

• Low-carbon fuels
• Lubricants
• Bitumen
• Sulphur
• Gasoline
• Diesel
• Aviation and marine fuel
• Produces and sells petrochemicals for industrial use
• Manages oil sands activities

Furthermore, the company produces base chemicals, including ethylene, propylene, aromatics, and intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol.

Shell plc also generates electricity through wind and solar resources, produces and sells hydrogen, and provides electric vehicle charging services.

Wells Fargo has an Overweight rating and a $181 target price objective.

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