Crude oil is off to a weak start in 2025, falling more than 15% so far this year. On Monday, prices fell below $60 a barrel — the lowest since 2021. The decline came as fears of a global recession grow and OPEC+ surprised markets by speeding up the end of production cuts. Making things worse, Saudi Arabia also sharply lowered its official selling prices, adding more pressure to an already shaky market.
Given this uncertainty, investors may find stability in large-cap, high-yield energy stocks like Kinder Morgan KMI, Canadian Natural Resources Limited CNQ, Chevron CVX and , which offer steady dividends and resilience against market swings.
A storm is brewing in the global energy markets as intensifying trade disputes and an unexpected surge in oil supply send shockwaves through investor sentiment. The Trump administration’s sweeping tariffs—ranging from 10% to 34% on key trade partners—are already prompting downward revisions to global growth forecasts. As countries like China gear up to retaliate, U.S. energy exports are squarely in the crosshairs, raising concerns over weakened industrial output and softer fuel demand worldwide.
Adding to the strain, OPEC+ stunned markets by announcing a crude production hike of 411,000 barrels per day for May—three times more than anticipated. Major producers, including Saudi Arabia and Russia, are ramping up output just as economic uncertainty is clouding demand prospects. With ample spare capacity and the potential for a growing surplus later this year, the risk of prolonged oversupply is rising, threatening recent price stability.
In a further sign of market softness, Saudi Arabia slashed its flagship crude prices by the steepest margin in over two years, underscoring the mounting pressure on oil benchmarks like Brent. The combination of geopolitical friction and supply-side shocks is setting the stage for a volatile chapter in global energy markets.
In times of market uncertainty, large-cap energy stocks with strong dividend yields offer a reliable safe harbor. These companies—each with a market cap over $10 billion—are built on steady cash flows and durable business models that help weather the volatility of commodity cycles. For investors seeking income and downside protection, they present a compelling case.
Industry leaders like Kinder Morgan, Canadian Natural Resources and Chevron and exemplify this approach. Their history of consistent dividend payouts and operational stability makes them attractive picks for those prioritizing long-term income in a turbulent market landscape.
Big energy companies shine thanks to their solid finances and lower overall risk. Their size and market leadership help them better handle the ups and downs of commodity prices, especially compared to smaller competitors. While they may not grow as fast as mid- or small-cap firms, their consistency appeals to investors who value stability over speed.
What’s more, their robust dividend payouts serve as a buffer in turbulent times, offering dependable income even when markets turn rough.
Kinder Morgan: Houston, TX-based Kinder Morgan is a leading midstream energy infrastructure provider in North America. The company operates pipelines across 79,000 miles to transport natural gas, crude oil, condensate, refined petroleum products, CO2 and other products.
Kinder Morgan, carrying Zacks Rank #2 (Buy), is valued at some $56 billion. The consensus estimate for this energy infrastructure provider’s 2025 earnings per share indicates 11.3% year-over-year growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KMI pays out a quarterly dividend of 28.75 cents, which gives it a 4.6% yield at the current stock price.
Canadian Natural Resources: It is one of the largest independent energy companies in Canada. The company is engaged in the exploration, development and production of oil and natural gas. Canadian Natural boasts a diversified portfolio of crude oil (heavy as well as light), natural gas, bitumen and synthetic crude oil.
Over the past 60 days, the Zacks Consensus Estimate for Calgary-based CNQ’s 2025 earnings has moved up 4.1%. It has a market capitalization of roughly $58 billion.
A major incentive for holding CNQ stock is dividends. With a quarterly payout of 58.75 Canadian cents, CNQ shares currently yield 6% annually, well above the Zacks Oil/Energy sector average of 4.5%. Reflecting a shareholder-friendly nature, this Zacks Rank #3 (Hold) company recently hiked its payout by 4%.
Chevron: It is one of the largest publicly traded oil and gas companies in the world, and it participates in every aspect related to energy—from oil production to refining and marketing.
The Zacks Consensus Estimate for Chevron’s 2025 earnings indicates 2.9% growth. This #3 Ranked company has a market capitalization of more than $250 billion.
With a quarterly payout of $1.71 per share, Chevron stock has a 4.8% dividend yield, above the generous sector average and significantly over the S&P 500’s 1.5% average.
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This article originally published on Zacks Investment Research (zacks.com).
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