Is Shell plc (SHEL) the Best Oil and Gas Dividend Stock According to Billionaires?

From Yahoo Finance: 2025-03-31 09:26:00

  • The US is now producing a record 13.49 million bpd of crude oil, with production expected to rise to 13.59 million bpd in 2025. However, falling Brent prices pose a risk to production, expected to average $74 this year and drop to $66 in 2026.
  • The Permian Basin, the largest US oil field, is nearing peak output, with production growth expected to slow by 25% this year. Oil and gas executives are concerned about the impact of tariff policies on drilling plans.
  • Despite challenges, US oil and gas companies distributed over $49 billion in dividends in Q3 of 2024, up from $32.2 billion three years ago. The industry may need to focus on natural gas to maintain high payout levels.
  • US natural gas prices have surged over 114% in the past year, with demand expected to reach record highs. Warren Buffet’s Berkshire Hathaway has invested in an oil and gas giant, reflecting confidence in the sector’s dividend potential.
  • Shell plc (NYSE:SHEL) is ranked 5th on the list of best oil and gas dividend stocks according to billionaires. Despite tough Q4 2024 earnings, Shell generated significant cash flow, announced a dividend increase, and plans for a $3.5 billion buyback program.
  • Shell plc (NYSE:SHEL) may increase its dividend by 10%-20% by 2026. The company continues its focus on simplification, cost reductions, and shareholder returns. While SHEL shows promise, some AI stocks may offer greater potential for higher returns in a shorter timeframe.

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