Why ConocoPhillips (COP) is Among the Top Oil and Gas Dividend Stocks

ConocoPhillips (NYSE:COP) is included among the 15 Best Natural Gas and Oil Dividend Stock to Buy Now.

With its deep, diverse, and durable portfolio, ConocoPhillips (NYSE:COP) boasts a breakeven level of less than $40 a barrel, putting the company at an advantage to navigate sector volatility. Still, COP remains focused on reducing costs and earlier this year, the oil and gas giant’s capital allocation strategy enabled it to reduce its FY 2025 capital spending guidance by $500 million without impacting production levels.

ConocoPhillips (NYSE:COP) returned $4.7 billion to its shareholders in the first half of 2025, equal to around 45% of its CFO and consistent with its full-year guidance and long-term track record. The company announced a quarterly dividend of $0.45 per share in August.

ConocoPhillips (NYSE:COP) expects to add $7 billion to its free cash flow by 2029, thanks to its investments in Alaska and the ballooning LNG sector, in addition to the additional cost and margin enhancements from its merger of Marathon Oil last year. This should allow the energy company to organically grow its shareholder payouts in the coming years.

ConocoPhillips (NYSE:COP) is one of the world’s largest independent E&P companies based on oil and natural gas production and proved reserves.

While we acknowledge the potential of COP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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