SM Energy Company (SM): Stability Meets Yield in a Dividend Capture Play

SM Energy Company (NYSE:SM) is included among the Best High Yield Stocks to Buy in October.

SM Energy Company (NYSE:SM) is an oil and gas exploration and production company concentrated on US oil and natural gas. Its base of operations is in Midland Basin and South Texas, with a purchase in Utah’s Uinta Basin following a massive acquisition. The company’s growth is predicated on high quality, production growth, and cash flow accretive assets.

Recently, SM Energy Company (NYSE:SM) has been focused on developing and enhancing Uinta Basin assets, increasing production efficiency, and strengthening its balance sheet. The company is being driven by operational excellence in every respect, a couple of very good quality portfolios of assets, excellent financial discipline, and risk controls that include hedging and cost control.

On September 25, SM Energy Company (NYSE:SM) announced a quarterly dividend of $0.20 per share, maintaining the same dividend. It has never failed to pay a dividend for the past three decades. The stock has a dividend yield of 2.90%, as of September 27.

While we acknowledge the potential of SM 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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Disclosure: None.