Photo by Waldemar Brandt on Unsplash

By now, you’re aware that Russia has attacked Ukraine.

As Reuters reported: “In announcing a major military operation, Russian President Vladimir Putin deflected global condemnation and cascading new sanctions—and chillingly referred to his country’s nuclear arsenal as he threatened any foreign country attempting to interfere with ‘consequences you have never seen.’”

Unfortunately, the situation could deteriorate further, with NATO planning to reinforce its presence on the eastern front. We should also consider that Europe and the U.S. could introduce crippling sanctions against Russia

Oil supplies are already tight, with OPEC failing to meet its target output and an increased demand for fuel ahead of summer driving season, and sanctions against Russia will onliy exacerbate this issue. Remember, as UBS analyst Giovanni Staunovo told Reuters, “Russia is the third-largest oil producer and second-largest oil exporter. Given low inventories and dwindling spare capacity, the oil market cannot afford large supply disruptions.”

Those catalysts could send oil from today’s high of $105 to $150, and that’s just in the near term. You can bet we’ll feel that at the pump.

So, how can the average investor profit from gushing oil prices?

One of my favorite ways is to pick up dividend-paying oil stocks, like the ones listed below.

Exxon Mobil (XOM), which has a dividend yield of 4.67%, declared a cash dividend of $0.88 per share. The dividend is payable on March 10, 2022 to shareholders of record as of the close of business on February 10. It has also started a $10 billion share buyback program.

Valero Energy (VLO) has a yield of 4.71% and just declared a regular quarterly cash dividend on common stock of $0.98 per share. The dividend is payable on March 3, 2022, to holders of record as of the close of business on February 3, 2022.

Phillips 66 (PSX) carries a dividend yield of 4.44%. PSX declared a quarterly dividend of $0.92 per share, payable on March 1, 2022, to shareholders of record as of the close of business on Feb. 22, 2022.

Here’s hoping things cool off with Russia, and with supply issues.

Until then, it’s best to protect your portfolio with the above-mentioned oil dividend stocks.