With major U.S. indexes hovering near record highs, many investors are increasingly turning to high-income dividend stocks to balance growth and income. This strategic shift aims to secure reliable, consistent income to act as a defensive stabilizer against potential market volatility. However, rather than simply hunting for the highest yields, a preferred 2026 strategy for long-term investors is focusing on dividend growth and companies with a track record of not only maintaining but also increasing their payouts.
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.
Oil & Gas stocks offer the best of both worlds, with the energy sector the second-best-performing sector behind only Materials, after notching a 20.7% return in the year-to-date, eclipsing the 1.4% gain by the S&P 500. Here are the Top 5 North American Oil & Gas Dividend Stocks For 2026.
#1. Exxon Mobil
Market Cap: $633.5B
Forward Dividend Yield: 2.72%
52-Week Share Returns: 39.4%
Exxon Mobil (NYSE:XOM) is North America’s largest Oil & Gas company. The company operates throughout the energy chain, including upstream exploration, downstream refining, and chemicals. This integration helps it manage market volatility, with strong refining margins providing support when oil prices are lower.
Exxon is widely considered a strong investment thanks to its robust, integrated business model, consistent dividend increases, and low-cost growth opportunities. ExxonMobil has delivered high returns, with a nearly 40% stock increase over the past year (as of Feb 2026), outpacing many industry peers. The company maintains a solid, low-debt balance sheet and aggressively returns capital through both dividends and share buybacks. With over 43 consecutive years of dividend increases, XOM is a reliable income stock, supported by a trailing 12-month dividend yield of 3.5%, making it an attractive option for income-focused investors. Further, the company’s massive investments in Guyana (Stabroek block) are expected to provide significant, low-cost production growth through 2030, enhancing its long-term profitability.
#2. Chevron
Market Cap: $360.9B
Forward Dividend Yield: 3.91%
52-Week Share Returns: 17.4%
Chevron Corp. (NYSE:CVX) is the United States’ second largest integrated energy company. Headquartered in San Ramon, California, it focuses on worldwide oil and gas production, refining, and marketing, producing roughly 3.0 million barrels of oil equivalent per day with over 9.8 billion barrels in reserves as of year-end 2025.
Buying Chevron (CVX) stock offers a compelling mix of high-yield income and growth potential, driven by robust free cash flow projections, low debt and a low oil price breakeven point. Chevron offers an attractive dividend yield (roughly 3.9%-4.5%), which is significantly higher than the S&P 500 average. It has a "fortress" balance sheet with a net debt ratio below 15%, providing stability and the ability to return cash to shareholders through dividends and buybacks even if oil prices fluctuate.
The company expects a major inflection point in free cash flow in 2026, driven by increased production and lower costs. With a breakeven price around $30 per barrel, Chevron has one of the lowest-cost operations in the oil industry, allowing it to remain profitable during market downturns.
Further, Chevron continues to hedge its oil and gas bets, allocating ~10% of 2025 capex to lower-carbon initiatives, including renewable fuels and carbon capture.
#3. Enterprise Products Partners L.P.
Market Cap: $76.1B
Forward Dividend Yield: 6.25%
52-Week Share Returns: 6.7%
Enterprise Products Partners L.P. (NYSE:EPD) is a leading North American midstream energy company that gathers, processes, transports, stores, and exports natural gas, natural gas liquids (NGLs), crude oil, and refined products. Operating over 50,000 miles of pipelines, it connects producers with consumers, primarily through fee-based services and infrastructure.
Enterprise Products Partners L.P. (EPD) is a top choice for income-focused investors thanks to its high, reliable distribution yield, excellent record of annual increases, and resilient, fee-based midstream model. EPD offers a high distribution yield (roughly 6.8% in early 2026) that has been increased annually for 27 consecutive years.
Over 80% of its revenue is fee-based, insulating it from commodity price volatility and making it a "sleep well at night" stock. It boasts an industry-leading credit rating, solid distribution coverage, and has achieved record cash flows. Further, EPD is investing billions in new capital projects ($5.1B+ in 2024-2025) and is well-positioned to benefit from increased natural gas demand, particularly for AI data centers. Trading at ~8.5x P/OCF, EPD appears undervalued compared to its historical average valuations.
#4. Enbridge
Market Cap: $111.5B
Forward Dividend Yield: 5.55%
52-Week Share Returns: 13.8%
Enbridge (NYSE:ENB) is a Canadian energy infrastructure company that transports, distributes, and generates energy. It operates the world’s longest crude oil/liquids pipeline system (moving ~30% of N.A. crude), transports ~20% of U.S. natural gas, runs North America's largest natural gas utility, and develops renewable power.
Enbridge (ENB) is a premier income-generating stock, ideal for investors seeking high, reliable dividends and long-term stability. Enbridge has raised its dividend for 30 consecutive years, demonstrating a high level of consistency and commitment to returning value to shareholders, even through tough economic cycles.
The stock currently offers a robust dividend yield of ~5.7%, significantly higher than the average energy stock (~3.1%) and the S&P 500 (~1.1%). Enbridge operates massive pipelines, natural gas utilities and renewable power assets. Nearly 98% of its EBITDA is generated from regulated or take-or-pay contracts, ensuring stable, predictable cash flow regardless of short-term energy price volatility. While a leader in oil transportation, the company is actively expanding its natural gas utilities and renewable energy portfolio to meet changing global energy needs, reducing reliance on a single commodity.
#5. Peyto Exploration & Development Corp.
Market Cap: $3.8B
Forward Dividend Yield: 5.19%
52-Week Share Returns: 67.2%
Another Canadian energy giant, Peyto Exploration & Development Corp. (OTCPK:PEYUF) focuses on the exploration, development, and production of unconventional natural gas, oil, and natural gas liquids. Operating in Alberta’s Deep Basin, the company is known for a low-cost structure, utilizing integrated infrastructure to maximize profitability.
Peyto is considered a strong investment due to its position as one of Canada's lowest-cost natural gas producers, offering high-margin production, a sustainable dividend yield, and significant growth potential driven by LNG expansion. With the expansion of LNG Canada and global demand for cleaner energy, Peyto is positioned to benefit from increased, higher-priced natural gas exports. The shares have been on a tear, thanks to strong bottom-line growth: In Q3 2025, Peyto reported a 29% increase in funds from operations, showcasing strong operational execution and hedging strategies.
By Alex Kimani for Oilprice.com
