Bank of America Still Loves 4 Dividend Paying Energy Stocks Even After Oil Plunged

Bank of America is sticking with four dividend-paying energy stocks because it believes the recent oil plunge is likely a reset, not the end of the trade. The bank’s view is that even after crude gives back some gains, supply remains tight enough to support strong cash flow and shareholder payouts for the rest of 2026.

Why BofA still likes them

The bank’s energy team pointed out that a large amount of production remains shut in and that it could take weeks or months to fully restart fields and restore normal flows. That means the supply backdrop may stay tighter than the recent selloff suggests, giving dividend-paying producers and integrated names room to keep generating cash.

BofA also argued that future oil balances are likely to be tighter, mid-cycle prices could remain higher, and efforts to refill strategic reserves may create additional demand. In other words, the firm sees enough structural support in the market to keep favoring quality energy stocks even after oil has plunged.

The four names

According to the report, the four dividend-paying energy stocks BofA still likes are:

• California Resources, which it highlighted for its reliable dividend.

• Devon Energy, which it backed because of its attractive payout policy and Permian exposure.

• Diamondback Energy, one of the strongest pure-play Permian producers, with a solid dividend.

• Ovintiv, which BofA called a top pick for 2026 because of its portfolio cleanup and strong long-term runway.

Why this matters

This is a good reminder that oil stocks do not move only on the latest crude price swing. Investors with a longer horizon often care more about balance sheets, dividend safety, asset quality, and how quickly companies can turn volatility into cash flow.

For energy investors, the message is simple: even if oil has pulled back sharply, BofA thinks the best dividend-paying producers still offer enough value and resilience to own.