More Than Just Oil Gains! Goldman Sachs’ 4 Top Energy Stocks With Dividends Up to 5%

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11:39

Hey energy investors! 🚨 Oil’s soaring past $100, but Goldman Sachs says don’t just chase oil prices—they’ve handpicked 4 energy stocks that deliver dividends up to 5% + double-digit upside! These picks aren’t just riding the geopolitical wave—they’ve got rock-solid cash flow, steady dividend growth, and undervalued valuations. Let’s dive into Goldman’s top picks!

As the U.S. launched military strikes against Iran, international oil prices surged—Brent crude broke above $100 per barrel, and West Texas Intermediate (WTI) quickly approached this key level. Energy stocks immediately became the focus of capital inflows, with the sector soaring overall. However, Goldman Sachs pointed out in its latest report that rising oil prices alone are no longer the only driver of this rally. The four energy stocks handpicked by the bank not only benefit from the price dividends brought by geopolitical conflicts but also attract dual attention from capital pursuing passive income and value investment, thanks to their strong cash flow, stable dividend growth potential, and undervalued valuations.

Goldman Sachs analysts believe that while some large exploration and production giants have seen stunning gains in the past six months and their valuations are already at high levels, there are still many companies in energy sub-sectors with excellent entry points. These companies not only have reliable dividend yields but also are expected to raise their dividends in the future. Below are the four latest energy stocks endorsed by Goldman Sachs—all rated “Buy,” with double-digit upside potential relative to their target prices and dividend yields as high as nearly 5%.

$Diamondback(FANG)$

Headquartered in Midland, Texas, Diamondback Energy is an independent oil and gas exploration company focused on the development of unconventional onshore oil and gas reserves in the Permian Basin of West Texas. Its business covers core areas such as the Spraberry, Wolfcamp, and Delaware Basins, and it owns 770 miles of crude oil and natural gas gathering pipelines and an integrated water treatment system. The stock currently has a dividend yield of 2.29%, and its share price is expected to rise further. Goldman Sachs has set a target price of $212, representing a 20% upside from current trading levels.

$Ovintiv Inc.(OVV)$

Ovintiv is an oil and gas exploration and production company with operations in both Canada and the United States. It may not be familiar to many investors, but it is a target with total return potential in Goldman Sachs’ view. The company’s business includes the marketing of oil, natural gas liquids (NGLs), and natural gas, with assets including the Anadarko Basin, Montney, and Permian Basin. Ovintiv has a dividend yield of 2.20%, and Goldman Sachs’ target price of $66 implies a 13% upside.

$Permian Resources Corp(PR)$

Permian Resources is an independent oil and gas company focused on the core area of the Delaware Basin within the Permian Basin, committed to achieving sustainable returns through the acquisition, optimization, and development of oil and gas assets. The stock currently has a price-to-earnings (P/E) ratio of only 8.5 times and a dividend yield of 3.15%, with outstanding total return potential. Its asset portfolio includes over 479,500 net leased acres and approximately 94,900 net mineral acres. Goldman Sachs’ target price of $22 means investors could gain 14%.

$Viper Energy Partners LP(VNOM)$

Viper Energy primarily owns and acquires mineral and royalty interests in oil and gas assets in the Permian Basin, making it a typical mid-cap energy stock. With a dividend yield of as high as 4.998%, it stands out among the four stocks. The company’s assets cover approximately 75,000 square miles, with about 1,197,600 total mineral acres and 34,200 net royalty acres, and proven reserves of approximately 179 million barrels of oil equivalent. Goldman Sachs’ target price of $59 represents an impressive 35% upside from current levels.

Overall, these four energy stocks endorsed by Goldman Sachs not only ride the wave of rising oil prices but also build a safety net for investment with solid dividend returns. For investors seeking stable passive income while hoping to share in the dividends of the energy industry, they are undoubtedly worthy of focus in the current market environment.\

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