The market volatility resulting from the conflict in Iran is enough to make even the most experienced investors nervous. While some people are rushing towards investing in gold to strengthen their portfolio, there are better opportunities out there than in the precious metal. For example, right now with energy prices high, oil dividend stocks represent excellent choices.
Those committed to finding oil loopholes for passive income investing need look no further than oil dividend stocks Two Fool.com contributors are identifying these as great opportunities right now.
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A multi-decade history of growing its dividend makes this energy giant a great consideration
Scott Levin (Chevron): While the 3.6% forward dividend yield certainly isn’t worth denying, this one figure belies another number that makes a lot more clear. beam (CVX +0.12%) The attractiveness of stocks as passive income investments: A multi-decade dividend growth streak.
today’s change
(0.12%) $0.24
current price
$201.68
key data points
market cap
$403B
day limit
$201.21 -$205.06
52wk range
$132.04 -$205.08
volume
592K
average volume
12m
gross margin
14.66%
dividend yield
3.43%
For 39 consecutive years, Chevron has maintained annual dividend increases, a feat that very few companies can claim, let alone energy stocks. Over the past four decades, energy prices have boomed and fallen, and all the while, Chevron has continued to grow its dividend. This achievement reflects management’s skill in maintaining its financial health during low energy prices.
Of course, it’s not just that the company has achieved a 39-year streak of growing its dividend higher that should encourage potential investors. During a recent investor presentation, Chevron insisted it would reach breakeven including dividends and capital spending from 2026 to 2030, even if oil benchmark Brent crude fell to $50 a barrel.
While some of Chevron’s upstream operations may be impacted by the conflict in Iran and the closure of the Strait of Hormuz, it is important to note the company’s broader global footprint, which includes the Bakken Formation and Permian Basin in the United States as well as the Gulf of Mexico. In addition to the US, Chevron operates in several regions, including Guyana, Venezuela, West Africa and Australia.
For a conservative passive income game, chevron stock Is a great option.
A dividend-paying oil company trading at a highly attractive valuation
Took Samaha (Diamondback Energy): Whether or not the recent surge in oil prices proves sustainable Diamondback Energy (Fang +1.17%) A good value stock to buy. The reality is that it is extremely difficult to predict where oil prices will be in the future, let alone predict where geopolitical conflicts are going or the state of shipping energy through the Strait of Hormuz.
However, we know that oil production is often in less stable areas and prone to price volatility. We also know that diamondback energy produces energy In the US, with a main focus on the Permian Basin, it is conservatively run with an investment-grade balance sheet, generates a steady flow of cash, and protects the $4.20 base dividend (currently yielding 2.4%) even if oil falls to $37 a barrel.
today’s change
(1.17%) $2.23
current price
$192.54
key data points
market cap
$54B
day limit
$190.02 -$194.68
52wk range
$114.00 -$194.68
volume
4.6M
average volume
2.6
gross margin
35.16%
dividend yield
2.10%
Management estimates its free cash flow (FCF) in 2026 could range from $3.1 billion at an oil price of $50 per barrel to $6.7 billion at $80 per barrel. To put those figures into context, based on current market cap, those figures would put Diamondback at 17.6x FCF in 2026 at $50 per barrel, versus 7.7x FCF at $80 per barrel. The current price is around $110 per barrel.
All told, the risks for the stock appear to be tilted to the upside. There is no guarantee that oil prices will remain high. Still, you have to believe that it will fall far enough to avoid doing so. oil reserves Look like a good value investment.
Should you boost your passive income stream with Diamondback Energy and Chevron stock now?
Since investing goals vary, there is no single stock that will appeal to everyone. That said, Chevron stock will appeal to those looking to balance passive income with low risk exposure. On the other hand, investors looking for a value option may find Diamondback Energy more attractive right now.