Summary: Natural gas investments promise stable income streams and alignment with the industry’s shift towards more sustainable, environmentally friendly solutions. In this guide, we present our picks for the 3 natural gas dividend stocks for 2024 that you can invest in on an online stock trading platform such as eToro.
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What are natural gas dividend stocks?
Natural gas dividend stocks are shares in companies that operate within the natural gas industry and pay regular dividends. These companies are involved not only in the production but also transportation, storage, and distribution of natural gas.
Companies in the natural gas sector often have stable cash flows thanks to government and long-term contracts which allow them to offer attractive dividend yields. As such, they tend to attract stock investors with a longer investment horizon as well as those who wish to gain exposure to the commodity market while ensuring some kind of passive income.
3 natural gas dividend stocks for 2024
Our top 3 picks for natural gas dividend stocks in 2024 include:
- Kinder Morgan (NYSE: KMI);
- Cheniere Energy (NYSE: LNG);
- ExxonMobil (NYSE: XOM).
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Let’s take a closer look at each of them.
1. Kinder Morgan (KMI)
Kinder Morgan operates the largest natural gas transmission network in the US (70,000 miles of natural gas pipelines and 700 billion cubic feet of storage capacity,), transporting around 40% of all gas produced in the country. In addition to natural gas, the company also transports refined petroleum products as well as carbon dioxide, handling oil, renewable natural gas, and liquefied natural gas.
Thanks to its robust and diverse portfolio, the company generates more than 90% of its cash flow from secure contracts, fees, and hedges, a huge chunk of which is allocated to high-yielding dividends and share repurchases.
As of February 2025, Kinder Morgan has a dividend yield of 6.64%.
Kinder Morgan stock price today
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2. Cheniere Energy (LNG)
Cheniere Energy is the largest liquefied natural gas (LNG) producer in the US and the second-largest one globally. It is responsible for the acquisition, transportation, liquefaction, and delivery of natural gas, and boasts one of the world’s largest LNG platforms along the US Gulf Coast.
As of February 2024, Chenier has a dividend yield of just 1.02%, but that should not deter you as it expects a cumulative $12 billion in free cash by 2027.
Cheniere Energy stock price today
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3. ExxonMobil (XOM)
ExxonMobil Corporation, often called just Exxon, is a prominent US-based multinational oil and gas corporation operating as a vertically integrated entity across the entire oil and gas industry. The company is massive, with a market cap of around $410 billion, and it’s got a long track record going back to the 1800s. However, what sets Exxon apart is the fact that it has been raising its dividends for over forty consecutive years.
As of February 2024, Exxon’s dividend yield is 3.71%.
ExxonMobil stock price today
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– How to buy Devon Energy stock;
– How to buy Equitrans Midstream stock;
– How to buy Hess stock;
– How to buy Pioneer Natural Resources stock.
Where to buy natural gas stocks
To invest in the natural gas dividend stocks on our list, you’ll have to find a suitable brokerage platform.
We recommend eToro, a widely-used investment platform with millions of users worldwide and a range of investing features, such as:
- Commission-free stock trading;
- Access to over 2,000 stocks from 17 different exchanges;
- The option to purchase fractional shares;
- Charting tools;
- A user-friendly platform that simplifies the trading experience.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
Pros and cons of buying natural gas dividend stocks
Pros
- Diversification: Investing in the natural gas industry can give you exposure to broader geographical markets and help you diversify your portfolio;
- Global demand: Natural gases are becoming more and more popular as we’re slowly switching to more sustainable, greener energy solutions;
- Dividend yields: All companies on our list pay dividends, which makes them a potentially attractive buy for investors looking for long-term passive growth;
- Stable cash flow: Natural gas companies usually derive their revenue from long-term contracts, ensuring a consistent income stream.
Cons
- Market volatility: The natural gas industry can be volatile, as it is influenced by factors such as geopolitical events and global economic conditions;
- Environmental concerns: While natural gas is a more sustainable solution, the extraction and refinement processes are still cause enough for concern for many investors;
- Gas price dependency: Natural gas stocks are often influenced by gas prices. That is, if natural gas prices go down, they can negatively affect the profitability of companies in the industry.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about natural gas dividend stocks
Do natural gas stocks pay dividends?
Some natural gas stocks pay dividends, for example, Kinder Morgan (NYSE: KMI), Cheniere Energy (NYSE: LNG), and ExxonMobil (NYSE: XOM).
What energy companies pay the most dividends?
Some of the energy companies that pay most dividends include Chevron Corp. (CVX), Devon Energy Corp (DVN), and TotalEnergies SE (TTE).
How to buy natural gas dividend stocks?
To buy natural gas dividend stocks, you can open an account with an online stock brokerage such as eToro.
Where can I buy natural gas dividend stocks?
You can buy natural gas dividend stocks through online brokerage platforms such as eToro.
What are the best natural gas stocks?
Some of the more sought-after natural gas stocks include Devon Energy (NYSE: DVN), Equitrans Midstream (NYSE: ETRN), Hess (NYSE: HES), ExxonMobil (NYSE: XOM), and Pioneer Natural Resources (NYSE: PXD).
Are there natural gas ETFs?
Yes, there are natural gas ETFs. To learn how to invest in natural gas ETFs, you can check out our separate guide.
Are natural gas stocks an ESG investment?
Yes, natural gas stocks can be an ESG investment, as they are shares in companies that seek more sustainable and renewable energy solutions.
Should you invest in natural gas stocks?
Natural gas stocks can be a good investment for those seeking long-term passive income. However, be sure to always conduct thorough research before committing to any investment, as natural gas stocks can be volatile (and dependent on commodity prices).
