Energy Dividend Aristocrats Shine Amid Market Uncertainty

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With U.S. markets trading close to record highs, many investors are now turning to dividend-paying stocks as they try to balance growth and income. Dividend investing provides a predictable and reliable source of cash flow that can complement other forms of income. Dividend stocks can also help protect your portfolio when the stock market loses steam, with predictions of a market crash growing. Studies have shown that dividend-paying stocks tend to hold up much better during market downturns, with an interesting study finding that they declined by an average of 14.4% during major drawdowns over the past 50 years compared with a 28.2% crash by non-dividend-paying stocks and 19.9% by the S&P 500.
The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) tracks the S&P 500 Dividend Aristocrats index composed of the companies that have grown their dividends for the last 25 consecutive years. Dividend aristocrats are generally considered to be high-quality businesses, a major attraction for long-term investing. After all, a company cannot consistently grow and pay out dividends for 25+ years without having a strong competitive advantage. Investing in dividend aristocrats helps investors avoid the so-called dividend traps wherein investors are attracted to potentially troubled companies by merely looking at their high yields.
So far in 2025, energy-sector dividend aristocrats have shown a mixed performance compared to their counterparts in other industries. While mid-June's rally pushed WTI crude to about $77.6 per barrel (its highest level this year) prices have since retreated into the low $60s. Historically, the group's strong balance sheets and disciplined capital spending have allowed them to maintain and even grow dividends through commodity cycles, though they can lag more defensive sectors when crude prices weaken. This dynamic has kept the energy aristocrats in focus for income investors seeking yield with a measure of growth potential tied to the global energy market.
Here are the leading dividend aristocrats in the oil and gas sector.
#1. Exxon Mobil
Forward Dividend Yield: 3.69%
Sector: Energy
Industry: Oil and Gas Integrated
U.S. oil and gas giant, Exxon Mobil Corp. (NYSE:XOM), is a highly-rated dividend aristocrat, with a dividend growth streak of 41 years. Exxon has a high payout ratio for an energy company, with ~50% of 2025 earnings forecast in dividends. During the first quarter, Exxon returned $4.3B in dividend to shareholders with another $4.8B spent on share buybacks.
Exxon reported second quarter revenue of $81.51B (-12.4% Y/Y), beating the Wall Street consensus by $1.2B while Q2 Non-GAAP EPS of $1.64 beat by $0.09. During the earnings call, Exxon Chairman and CEO Darren W. Woods outlined plans to grow Permian production by 700,000 barrels of oil equivalent (boe) per day to 2.3 million by 2030 and expand Guyana output to 1.7 mboe.
Exxon tops Morningstar's best dividend stocks list, with Morningstar director Allen Good saying the company's dedication to growing oil and gas production lowers risks for investors, 'While this strategy is unlikely to win praise from environmentally oriented investors, we think it's more likely to be more successful and probably holds less risk.' Morningstar has a $135 price target on XOM, good for 26.2% upside from current price.
#2. Chevron
Forward Dividend Yield: 4.41%
Sector: Energy
Industry: Oil and Gas Integrated
Chevron Corp. (NYSE:CVX) is another dividend champ, having grown distributions for 38 consecutive years. Chevron's 4.4% dividend yield is among the highest for large-cap oil and gas companies. The company returned a mixed report for the second quarter, with non-GAAP EPS of $1.77 beating by $0.02 while Q2 revenue of $44.82B (-12.4% Y/Y) missed by $230M. Chevron attributed lower earnings compared to a year ago to lower crude oil prices coupled with an unfavorable fair value adjustment for Hess shares.
Chevron completed the acquisition of Hess on July 18, 2025, after winning a legal battle with ExxonMobil over the rights to a stake in a lucrative offshore oil project in Guyana. The total enterprise value of the deal was $55 billion, including debt. The company increased its 2026 free cash flow guidance to $12.5 billion, thanks to the Hess acquisition, and anticipates realizing $1 billion in annual run-rate synergies from the merger by the wend of 2025.
#3. Eversource Energy
Forward Dividend Yield: 4.5%
Sector: Utilities
Industry: Regulated Electricity
Springfield, Massachusetts-based Eversource Energy (NYSE:ES) is a public utility that engages in the energy delivery business, providing electricity to 4.4 million customers. Eversource recently joined the S&P 500 Dividend Aristocrat Index thanks to its 25-year track record of dividend increases. However, what makes ES a compelling dividend pick is the fact that the company's five-year compound annual growth rate (CAGR) for the dividend clocks in at 5.9% — well above the average for the Aristocrat Index. The company has projected earnings growth of 5-7% annually through 2029, which should support dividend growth at the current clip.
Eversource reported second quarter revenue of $2.84B (+12.3% Y/Y),$90M below the Wall Street consensus while Q2 GAAP EPS of $0.96 was in-line. The company increased its 5-year infrastructure investment plan by 10% thanks to the balance sheet strengthening coupled with constructive regulatory outcomes.
By Alex Kimani for Oilprice.com
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