Oil Dividend Stocks That Can Thrive Even in a Low-Crude Market

Oil prices briefly soared above $100 per barrel in early September due to the conflict in Iran, but three dividend-paying oil companies can still afford to raise their payouts even if crude oil drops below this level.

The companies are Occidental Petroleum (OXY), ExxonMobil (XOM), and Energy Transfer (ET).

Occidental Petroleum generates most of its profits from upstream business, which flourishes when oil prices are high. Oxy produces the vast majority of its gas and oil in the U.S., making it well-insulated from overseas conflicts.

Oxy has a low trailing payout ratio of 30% and only needs WTI crude oil prices to stay above $40 per barrel to support its capex and dividends. It pays a forward dividend yield of 1.9% and has raised its payout annually for five consecutive years.