3 energy dividend stocks top Wall Street analysts are buying
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Phillips 66 (PSX) — TD Cowen's Jason Gabelman reiterated a buy rating and raised his price target to $255 from $240, citing a quarter-over-quarter net debt reduction and management's confidence in hitting the $15.5 billion net debt target one year ahead of schedule.
- Phillips 66 offers a 2.25% dividend yield (annualized $5.08) and management indicated the possibility of a larger dividend hike following 5% annual increases over the past two years, with Q2 earnings lifted by Middle East-driven refining margin strength.
- Crescent Energy (CRGY) — Evercore's Stephen Richardson reaffirmed a buy with an $18 price target after Q2 cash flow beat expectations by 10%, with the company tripling its Vital Energy acquisition synergy target to as much as $300 million.
- Crescent Energy raised its full-year oil production guidance, announced a quarterly dividend of $0.12 per share (annualized $0.48, ~4% yield), and is heading toward the lower end of prior capital spending guidance.
- Viper Energy (VNOM) — TD Cowen's Aaron Bilkoski reiterated a buy with a price target raised to $59 from $58, citing one of the highest production-per-share growth profiles in the royalty universe through end of 2027.
- Viper Energy declared a 32% base dividend hike effective Q3 2026 (4.5% annualized yield) and dropped its quarterly commitment to return at least 75% of cash available for distribution, shifting more excess free cash flow toward share repurchases over variable dividends.
Why it matters: Income-seeking investors now have three energy-sector buy-rated picks with distinct dividend profiles: Phillips 66's 2.25% yield with a potential dividend hike, Crescent Energy's ~4% yield backed by 10% cash flow beats, and Viper Energy's 32% dividend hike with a 4.5% yield. The analysts' rationale is specific — net debt reductions, raised production guidance, and revamped shareholder return frameworks — not just sector-wide optimism.
Ask SkimNews
