Commodities
Energy Stocks Will Be Hot Again in 2023. But Now It’s About Dividends
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A trader works on the floor of the New York Stock Exchange.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
After two straight years of big gains, energy stocks could outperform the market again in 2023, but this time it will be higher dividends rather than oil that will spur appetite for the sector.
In an effort to lure income investors, energy firms have aggressively boosted dividends over the last 12 months. Diamondback Energy Inc. increased its payout 412% in the span, the most of any S&P 500 member. Five of the index’s 10 biggest dividend boosts have come from the energy sector, including APA Corp.’s 355% hike, Pioneer Natural Resources Co.’s 276% raise and Halliburton Co.’s 167% increase.