Israel Getting Very Serious With Iran – Grab 4 Ultra-High-Yield Dividend Oil Giants Now

Although OPEC+ has announced plans to increase production by 411,000 barrels per day starting this month, actual increases may be smaller due to overproduction by some members, such as Kazakhstan and Iraq. Paradoxically, oil prices rose after this announcement, possibly because the increase was less than expected, or due to market sentiment expecting a tighter supply. Add in the fact that the Israeli airstrike on Iran’s nuclear facility led to a 6% jump in Brent crude prices to a five-month high. Such events raise concerns about potential supply disruptions in the Middle East, a critical oil-producing region.

24/7 Wall St. Key Points:

• The Israeli government has said it will not tolerate Iran having nuclear power
• The United States has asked not to attack Iran, and wants to avoid being dragged into Mideast chaos
• Big energy stocks have rallied off lows printed in early April, but are way below 52-week highs
• Are high-yield energy dividend oil stocks a good idea for you? Set up a meeting with a financial advisor near you for a complete portfolio review and find out. Click here to get started finding one. (Sponsored)

When you combine the geopolitical bounce the major oil benchmarks are receiving from the Israeli attack with global oil demand, which is projected to rise to 106 million barrels per day in 2025, up from 104.5 million in 2024, driven by non-OECD countries such as India, then add in a dash of cold weather in the Northern Hemisphere and robust petrochemical demand. You have all the tailwinds for the black gold to trade higher.

For investors, the timing could be perfect for grabbing some of the high-yield dividend giants that have treaded water this year while AI-related tech stocks have soared higher. We screened our 24/7 Wall St. energy research database and found four companies offering big and dependable dividends and the potential for some serious upside. All are rated Buy at top Wall Street firms.

Why do we cover large-cap 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 generating facilities, and provides decarbonization solutions and services, such as hydrogen and carbon capture, usage, and 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 a Buy rating with a $35 target price.

Chevron

Chevron Corporation is an American multinational energy company that is predominantly specialized 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.

Mizuho has a Buy rating and set a huge price target objective at $186.

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 a Buy rating with a $131 target.

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.

Piper Sandler has a Buy rating with an $80 target price objective.

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