EOG Resources (EOG): A Top Crude Oil Stock for Passive Income
An oil rig in action in a vast desert, drilling for natural gas.
One of the top crude oil stocks for passive income, EOG Resources, Inc. (NYSE:EOG) has delivered 27 years of regular dividends without ever reducing its payouts, which is a rarity in the oil patch. Moreover, the company has grown its cash distributions twice as fast as its peers since 2019 and even has a history of paying special dividends in order to meet its goal of returning at least 70% of its annual free cash flow to shareholders.
To make sure it can deliver the growth necessary to sustain its payouts, EOG Resources, Inc. (NYSE:EOG) announced in May that it is acquiring Encino Acquisition Partners in a deal worth $5.6 billion, giving the company access to an additional 675,000 net core acres and more than 1 billion barrels of undeveloped net resource.
EOG expects the deal to be immediately accretive and boost its cash flow from operations and free cash flow by 9%. As a result, the company bumped its quarterly dividend by 4.6% to $1.02 per share, taking its current annual dividend yield to 3.35%.
EOG Resources, Inc. (NYSE:EOG) is one of the largest crude oil and natural gas exploration and production companies with operations in North America and Trinidad and Tobago.
While we acknowledge the potential of EOG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and The 5 Energy Stocks Billionaires are Quietly Piling Into.
Disclosure: None.
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