XOM Emerges as Top Oil Stock for a $150 Investment Amid Resilient Energy Demand

ExxonMobil (XOM) stands out as a compelling oil stock for investors allocating $150, driven by strong cash flow, a resilient dividend, and strategic capital allocation. Chevron (CVX) remains a close contender with robust upstream performance.

ExxonMobil (XOM) has emerged as a leading recommendation for investors considering a modest $150 allocation in the energy sector. The company’s consistent free cash flow generation—exceeding $50 billion in the trailing 12 months—supports its ability to maintain a growing dividend and return capital to shareholders. With a current dividend yield of 3.4%, XOM offers both income and the potential for long-term capital appreciation, particularly amid sustained global energy demand and constrained supply growth. Chevron (CVX) closely follows as a top alternative, reporting adjusted earnings of $10.5 billion in Q3 2025, up 14% year-over-year, driven by strong production growth in the Permian Basin and robust refining margins. The company also returned $8.2 billion to shareholders through dividends and buybacks during the same quarter, reflecting disciplined capital allocation. The broader energy sector continues to benefit from geopolitical volatility and OPEC+ supply discipline, which have helped maintain crude prices above $80 per barrel. These fundamentals support the case for high-quality integrated oil majors like XOM and CVX, which maintain diversified operations across upstream, downstream, and chemicals. For a $150 investment, both stocks provide exposure to core energy assets with low volatility relative to mid-tier producers. XOM’s larger market cap and stronger balance sheet make it a slightly more resilient choice, while CVX’s higher production growth rates appeal to investors seeking aggressive expansion potential.