The table below shows Oil & Gas Stocks With High Dividend Yields based on the Highest Market Capitalization.
Name | Market Cap (Cr) | Close Price (Rs) |
Oil and Natural Gas Corporation Ltd | 368036.07 | 292.55 |
Indian Oil Corporation Ltd | 230388 | 163.15 |
Bharat Petroleum Corporation Ltd | 146489.64 | 337.65 |
Oil India Ltd | 95083.36 | 584.55 |
Hindustan Petroleum Corp Ltd | 84155.38 | 395.5 |
Great Eastern Shipping Company Ltd | 18157.13 | 1271.8 |
Chennai Petroleum Corporation Ltd | 13536.05 | 909 |
Alphageo (India) Ltd | 262.71 | 412.75 |
Content:
- What Are Oil & Gas Stocks?
- Best Oil & Gas Stocks With High Dividend Yield In India
- Top Oil & Gas Stocks With High Dividend Yield
- Who Should Invest In Oil & Gas Stocks With High Dividend Yield?
- How To Invest In The Oil & Gas Stocks With High Dividend Yield In India?
- Performance Metrics Of Oil & Gas Stocks With High Dividend Yield In India
- Benefits Of Investing In Oil & Gas Stocks With High Dividend Yield
- Challenges Of Investing In Oil & Gas Stocks With High Dividend Yield
- Introduction To Best Oil & Gas Stocks With High Dividend Yield
- List Of Oil & Gas Stocks With High Dividend Yield – FAQs
What Are Oil & Gas Stocks?
Oil & gas stocks represent shares of companies involved in the exploration, extraction, refining, and distribution of oil and natural gas. These stocks are tied to the energy sector and are influenced by global energy prices, geopolitical events, and environmental policies.
Investing in oil & gas stocks can offer substantial returns, especially when energy prices are high. However, these stocks are also volatile, subject to rapid price changes driven by global supply and demand dynamics and geopolitical tensions.
Additionally, oil & gas stocks can be impacted by regulatory changes and shifts towards renewable energy. Investors need to consider environmental policies and trends towards sustainability that could affect the long-term viability of fossil fuels.
Best Oil & Gas Stocks With High Dividend Yield In India
The table below shows the Best Oil & Gas Stocks With High Dividend Yield In India based on 1 Year Return.
Name | Close Price (rs) | 1Y Return (%) |
Oil India Ltd | 584.55 | 181.17 |
Hindustan Petroleum Corp Ltd | 395.5 | 133.47 |
Bharat Petroleum Corporation Ltd | 337.65 | 97.14 |
Indian Oil Corporation Ltd | 163.15 | 81.88 |
Chennai Petroleum Corporation Ltd | 909 | 78.45 |
Oil and Natural Gas Corporation Ltd | 292.55 | 59.65 |
Great Eastern Shipping Company Ltd | 1271.8 | 48.49 |
Alphageo (India) Ltd | 412.75 | 42.82 |
Top Oil & Gas Stocks With High Dividend Yield
The table below shows Top Oil & Gas Stocks With High Dividend Yields based on 1 Month Return.
Name | Close Price (rs) | 1M Return (%) |
Chennai Petroleum Corporation Ltd | 909 | 0.88 |
Oil and Natural Gas Corporation Ltd | 292.55 | -1.16 |
Great Eastern Shipping Company Ltd | 1271.8 | -1.65 |
Alphageo (India) Ltd | 412.75 | -1.87 |
Oil India Ltd | 584.55 | -4.5 |
Bharat Petroleum Corporation Ltd | 337.65 | -4.77 |
Indian Oil Corporation Ltd | 163.15 | -7.2 |
Hindustan Petroleum Corp Ltd | 395.5 | -9.18 |
Who Should Invest In Oil & Gas Stocks With High Dividend Yield?
Investors looking for regular income and who can handle market volatility might consider oil & gas stocks with high dividend yields. These stocks are suitable for those with a higher risk tolerance and an interest in the energy sector.
Oil & gas stocks with high dividends are particularly attractive to retirees or income-focused investors. These stocks often provide better yields compared to other sectors, offering a lucrative source of passive income despite the associated risks.
However, these investments require an understanding of the energy market’s dynamics. Investors should be prepared for potential price swings influenced by global oil supply, political events, and shifts in energy policies, which can impact stock performance and dividend stability.
How To Invest In The Oil & Gas Stocks With High Dividend Yield In India?
To invest in oil & gas stocks with high dividend yields in India, identify companies with a stable dividend history and robust financial health. Analyze their payout ratios and market performance through financial news and stock analysis platforms.
Once suitable stocks are identified, set up a brokerage account if you don’t already have one. Choose a broker that offers comprehensive access to the Indian stock market, and consider the transaction fees and platform reliability before proceeding.
Finally, continuously monitor your investments. The oil and gas sector can be volatile due to fluctuating oil prices and geopolitical influences. Regularly reviewing the performance of these stocks and staying informed about industry trends is crucial to maintaining a profitable investment.
Performance Metrics Of Oil & Gas Stocks With High Dividend Yield In India
Performance metrics of oil & gas stocks with high dividend yields in India include dividend yield percentage, payout ratio, and return on equity. These indicators assess financial stability and profitability, guiding investors toward informed decisions in this volatile and crucial energy sector.
Dividend yield is a key metric, reflecting the percentage of a company’s stock price paid out as dividends each year. High yields can attract investors, but it’s essential to verify that these are sustainable over time, considering the company’s earnings and cash flow.
Return on equity (ROE) provides insights into how efficiently a company uses its capital to generate profits. A strong ROE, coupled with a consistent dividend payout ratio, suggests a financially healthy company capable of maintaining or increasing its dividends, despite the unpredictable nature of the oil and gas markets.
Benefits Of Investing In Oil & Gas Stocks With High Dividend Yield
The main benefits of investing in oil & gas stocks with high dividend yield include receiving regular and often generous dividend payments. This sector’s stocks can also offer portfolio diversification and are valuable during periods of inflation, often correlating with rising energy prices.
- Regular Dividend Income: Oil & gas stocks with high dividends provide a consistent source of income, making them attractive for investors seeking steady cash flow. This is particularly beneficial during market volatility, as the dividends can provide a buffer against price fluctuations.
- Inflation Protection: As commodity prices typically rise with inflation, oil & gas stocks often perform well during inflationary periods. Their revenues can increase with rising energy prices, potentially leading to higher dividends, thus protecting investors’ purchasing power.
- Portfolio Diversification: Including oil & gas stocks in an investment portfolio can enhance diversification. This sector behaves differently compared to tech or consumer goods, often balancing the portfolio against sector-specific downturns and reducing overall investment risk.
- Potential for Capital Gains: Besides the high dividend yield, oil & gas stocks can offer the potential for capital appreciation. As global energy needs grow and oil prices potentially rise, these stocks can increase in value, providing substantial returns to shareholders.
Challenges Of Investing In Oil & Gas Stocks With High Dividend Yield
The main challenges of investing in oil & gas stocks with high dividend yields include their vulnerability to volatile oil prices and regulatory changes. Additionally, shifts towards renewable energy can impact the long-term viability and profitability of these traditionally fossil-fuel-based investments.
- Volatile Oil Prices: Oil & gas stocks are highly sensitive to fluctuations in oil prices. Market dynamics, geopolitical tensions, and global supply-demand imbalances can lead to significant price swings, affecting the profitability and dividend payouts of companies in this sector.
- Regulatory Risks: The oil and gas industry is heavily regulated. Changes in environmental policies, taxation, and drilling regulations can increase operational costs and impact profitability. Stricter regulations aimed at reducing carbon emissions could also limit future growth opportunities for these companies.
- Shift to Renewable Energy: The global trend towards renewable energy poses a long-term challenge for oil & gas companies. As more countries commit to reducing their reliance on fossil fuels, demand for oil and gas may decline, potentially reducing revenues and dividend payouts over time.
- High Capital Expenditures: Oil & gas companies require significant capital investments for exploration, extraction, and infrastructure maintenance. These high costs can strain financial resources, impacting the ability to sustain high dividend yields, especially during periods of low oil prices or economic downturns.
Introduction To Best Oil & Gas Stocks With High Dividend Yield
Oil and Natural Gas Corporation Ltd
The Market Cap of Oil and Natural Gas Corporation Ltd is Rs. 3,68,036.07 crores. The stock’s monthly return is -1.16%. Its one-year return is 59.65%. The stock is 62.62% away from its 52-week high.
Oil and Natural Gas Corporation Limited (ONGC) is an India-based company specializing in crude oil and natural gas. Its business segments include Exploration and Production, and Refining and Marketing. ONGC engages in exploration, development, and production of crude oil, natural gas, and value-added products within India.
Additionally, ONGC acquires oil and gas acreages outside India for exploration and production. The company is involved in downstream activities such as refining and marketing petroleum products, petrochemicals, power generation, LNG supply, pipeline transportation, SEZ development, and helicopter services. Its subsidiaries include Mangalore Refinery and Petrochemicals Limited, Hindustan Petroleum Corporation Limited, ONGC Videsh Limited, Petronet MHB Limited, and HPCL Biofuels Limited.
Indian Oil Corporation Ltd
The Market Cap of Indian Oil Corporation Ltd is Rs. 2,30,388.00 crores. The stock’s monthly return is -7.20%. Its one-year return is 81.88%. The stock is 90.82% away from its 52-week high.
Indian Oil Corporation Limited is an Indian oil company with segments including Petroleum Products, Petrochemicals, and Other Business Activities. The Other Business Activities segment covers gas, oil and gas exploration, explosives, cryogenic business, and wind and solar power generation.
Indian Oil’s business spans the entire hydrocarbon value chain, from refining and pipeline transportation to marketing, crude oil and gas exploration and production, petrochemicals, gas marketing, alternative energy sources, and downstream globalization. It has a network of fuel stations, bulk storage terminals, inland depots, aviation fuel stations, LPG bottling plants, and lube blending plants, and owns around nine refineries in India. Its subsidiaries include Chennai Petroleum Corporation Limited, IndianOil (Mauritius) Limited, Lanka IOC PLC, IOC Middle East FZE, and IOC Sweden AB, among others.
Bharat Petroleum Corporation Ltd
The Market Cap of Bharat Petroleum Corporation Ltd is Rs. 1,46,489.64 crores. The stock’s monthly return is -4.77%. Its one-year return is 97.14%. The stock is 103.74% away from its 52-week high.
Bharat Petroleum Corporation Limited is an India-based company engaged in producing, refining, and distributing petroleum products. Its business segments include fuel services like SmartFleet, Speed 97, UFill, PetroCard, and SmartDrive. Bharatgas offers comprehensive energy solutions, ensuring quality and reliability across various product categories.
Bharat Petroleum also provides automotive engine oils, gear oils, transmission oils, and specialty oils. Its refineries are located in Mumbai, Kochi, and Bina. The company deals with natural gas, liquefied natural gas, compressed natural gas, and city gas distribution. Its International Trade Department maintains global trade links with various partners.
Hindustan Petroleum Corp Ltd
The Market Cap of Hindustan Petroleum Corp Ltd is Rs. 84,155.38 crores. The stock’s monthly return is -9.18%. Its one-year return is 133.47%. The stock is 148.01% away from its 52-week high.
Hindustan Petroleum Corporation Limited is engaged in refining crude oil, marketing petroleum products, producing hydrocarbons, and managing exploration and production (E&P) blocks. The company also generates power and operates an LNG regasification terminal under construction. Its main segments are Downstream Petroleum and E&P of hydrocarbons.
The company’s businesses include HP refineries, HP retail (petrol bunks), HP Gas (LPG), HP lubricants, HP direct sales, HP projects and pipeline, HP supplies, operations, and distribution, HP international trade, HP natural gas and renewables, HP petrochemicals, and HP research and development. It exports various petroleum products, such as fuel oil, naphtha, high sulfur gasoil, and high sulfur gasoline.
Oil India Ltd
The Market Cap of Oil India Ltd is Rs. 95,083.36 crores. The stock’s monthly return is -4.50%. Its one-year return is 181.17%. The stock is 199.05% away from its 52-week high.
Oil India Limited is an India-based integrated exploration and production company in the upstream sector, providing crude oil and natural gas. The company’s segments include Crude Oil, Natural Gas, LPG, Pipeline Transportation, Renewable Energy, and Others. It owns and operates various facilities and equipment for seismic and geodetic work, 2D and 3D data acquisition, processing and analysis, drilling, oil and gas field development and production, LPG production, and pipeline transportation.
The company owns and operates a 1,157-kilometer-long fully automated crude oil trunk pipeline between Naharkatia and Barauni. Its operations span across Assam, Arunachal Pradesh, Mizoram, Tripura, Nagaland, Odisha, Andhra Pradesh, and Rajasthan, as well as offshore areas in Andaman, Kerala-Konkan, and KG shallow waters.
Great Eastern Shipping Company Ltd
The Market Cap of Great Eastern Shipping Company Ltd is Rs. 18,157.13 crores. The stock’s monthly return is -1.65%. Its one-year return is 48.49%. The stock is 74.82% away from its 52-week high.
The Great Eastern Shipping Company Limited is an Indian private-sector shipping company that transports crude oil, petroleum products, gas, and dry bulk commodities. The company operates in the shipping business segment, serving customers such as oil companies, refineries, manufacturers, miners, and producers.
The company’s fleet includes crude oil carriers like JAG LOK, JAG LALIT, and JAG LEELA, and product carriers such as JAG LOKESH and JAG AANCHAL. Its LPG carriers include JAG VIKRAM and JAG VIRAAT, and dry bulk carriers like JAG ANAND. Subsidiaries include The Greatship (Singapore) Pte. Ltd. and Great Eastern Services Limited.
Chennai Petroleum Corporation Ltd
The Market Cap of Chennai Petroleum Corporation Ltd is Rs. 13,536.05 crores. The stock’s monthly return is 0.88%. Its one-year return is 78.45%. The stock is 80.43% away from its 52-week high.
Chennai Petroleum Corporation Limited is an Indian refining company involved in processing crude oil into refined petroleum products. It operates two refineries with a combined capacity of over 11.5 million tons per annum (MMTPA). The Manali Refinery, with a capacity of about 10.5 MMTPA, produces fuel, lube, wax, and petrochemical feedstocks.
The company’s second refinery, located at Cauvery Basin in Nagapattinam, has a capacity of approximately 1.0 MMTPA. Chennai Petroleum’s product range includes LPG, motor spirit, superior kerosene, aviation turbine fuel, high-speed diesel, light diesel oil, naphtha, bitumen, lube base stocks, paraffin wax, fuel oil, hexane, microcrystalline wax, pet coke, and petrochemical feedstocks.
Alphageo (India) Ltd
The Market Cap of Alphageo (India) Ltd is Rs. 262.71 crores. The stock’s monthly return is -1.87%. Its one-year return is 42.82%. The stock is 54.18% away from its 52-week high.
Alphageo (India) Limited is an Indian company specializing in seismic services. It provides geophysical seismic data acquisition, processing, and interpretation services for exploring hydrocarbons and minerals. The company’s offerings include 2D and 3D seismic data acquisition, processing, interpretation, gravity magnetic surveys, airborne surveys, and geophysical mapping.
Alphageo focuses on geophysical services for the oil and gas sector. Its subsidiaries include Alphageo Marine Services Private Limited, Alphageo Offshore Services Private Limited, and Alphageo International Limited, based in Dubai. The company’s expertise lies in 2D and 3D geophysical data acquisition, processing, and interpretation.
List Of Oil & Gas Stocks With High Dividend Yield – FAQs
Best Oil & Gas Stocks With High Dividend Yield #1: Oil and Natural Gas Corporation Ltd
Best Oil & Gas Stocks With High Dividend Yield #2: Indian Oil Corporation Ltd
Best Oil & Gas Stocks With High Dividend Yield #3: Bharat Petroleum Corporation Ltd
Best Oil & Gas Stocks With High Dividend Yield #4: Oil India Ltd
Best Oil & Gas Stocks With High Dividend Yield #5: Hindustan Petroleum Corp Ltd
The Top Best Oil & Gas Stocks With High Dividend Yield based on market capitalization.
The top oil and gas stocks with high dividend yields in India are Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, Chennai Petroleum Corporation Ltd, Hindustan Petroleum Corp Ltd, and Oil and Natural Gas Corporation Ltd. These companies offer attractive dividends, making them appealing to income-seeking investors.
Yes, you can invest in oil & gas stocks with high dividend yields. Research companies with strong financials and consistent dividend histories. Use a brokerage account to purchase these stocks. Ensure you understand the sector’s volatility and risks, such as fluctuating oil prices and regulatory changes, before investing.
Investing in oil & gas stocks with high dividend yields can be beneficial for steady income and portfolio diversification. However, these stocks come with risks, including price volatility and regulatory changes. Assess your risk tolerance and investment goals before considering this sector for long-term financial stability.
To invest in oil & gas stocks with high dividend yields in India, start by researching companies with strong financials and reliable dividend histories. Open a brokerage account, choose stocks that align with your financial goals, and diversify your investments to mitigate risks associated with market volatility and regulatory changes.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.