Energy Dividend Stocks To Buy

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Energy Dividend Stocks To Buy

Energy Dividend Stocks To Buy In 2025

There's no doubt that energy stocks tend to be highly volatile. However, they also provide ample diversification, income, growth opportunities.

If we look at the energy sector, there are many companies that continue to pay dividends. This makes these energy stocks more appealing to investors. And last but not least, economic activities need energy which means there's always demand for it in the long term.

Fro And Civi - Two Energy Stocks To Check

According to experts, the two energy stocks that are a 'Strong Buy' in 2025 are Frontline (FRO) and Civitas Resources (CIVI).

Frontline (FRO) is basically a shipping company that is involved in crude oil transportation. They also ship refined petroleum products which makes them a key player in the energy sector.

For this year, Frontline (FRO) stock is down by 9.5% while the SP 500 is up by 26%. However, what should be noted is that Frontline (FRO) pays dividends with a yield of 13%. However, the only concerning part is the 81.1% payout ratio which is too high to be sustained.

According to experts, the revenue growth of Frontline (FRO) in 2024 will be 25%. For the year 2025, the earnings and revenue of Frontline (FRO) are expected to jump by 26.4% and 14.8%.

Civitas Resources (CIVI) is a natural gas oil producer in the Permian and DJ basins. The YTD performance of Civitas Resources (CIVI) is -25.8% when compared with the broader market.

Civitas Resources (CIVI) is involved in the production of natural gas, natural gas liquids, oil. This also means a diversified revenue stream which makes it a stable company.

According to experts, the earnings of Civitas Resources (CIVI) will decline in 2024. However, it will jump in 2025 by 5.02%. Also, the current price of Civitas Resources (CIVI) makes it very cheap. Civitas Resources (CIVI) is a 'BUY' based on the forecast by Wall Street analysts.

The target price for Civitas Resources (CIVI) is around $77. When we look at its current price, the target shows an upside of almost 51.7%.

The upper target price for Civitas Resources (CIVI) is around $106.00 which means a potential upside of almost 108.9%.

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