Dividend investors: Premier ASX energy shares to buy in December

Income investors often turn to energy shares because many of these companies have a track record of delivering reliable dividends, even when the broader market gets choppy. As we head towards the middle of December, a few well-known ASX energy names are standing out for their yields and long-term potential.

Here are my top three shares that income seekers might want to consider buying this month.

Woodside Energy Group Ltd (ASX: WDS)

Woodside is still one of the biggest energy names on the ASX, producing oil, LNG, and other key energy products. At a recent share price of about $24.70, it is offering a fully franked dividend yield of roughly 6.7%. That is a standout number when you compare it to many of the large-cap stocks on the market today.

In the last financial year, Woodside paid out approximately $1.65 per share in dividends, which is why its trailing yield remains above 6.5%. The company's dividend approach has been to return a solid portion of underlying profits to shareholders, a strategy that income-focused investors tend to appreciate.

Energy prices will always move around, and Woodside's earnings move with them, but the company's dividend policy aims to smooth out those fluctuations. For income investors willing to ride through the short-term market noise, this level of yield is hard to ignore.

Santos Ltd (ASX: STO)

Santos has had its fair share of challenges lately, including a softer profit result and a dividend cut in the last financial year. Despite that, the stock still sits on a respectable dividend yield of about 5.8% based on recent payouts and its current share price of $6.23.

The company already pays out a meaningful share of its free cash flow and expects to lift those returns from 2026. That focus on rewarding investors has captured the attention of those seeking both income and long-term growth.

However, Santos is also not without risk. Its earnings can be tied to commodity cycles, but the current yield makes it a contender for those focused on dividends rather than short-term price moves.

Yancoal Australia Ltd (ASX: YAL)

Yancoal is a bit different from the oil and gas producers above. It's a coal producer, and its dividend track record has been more volatile. Recent results show Yancoal's trailing yield can hit 10%, though that's influenced by its uneven and unpredictable dividend payments.

Based on a share price near $5.20, Yancoal's historical dividends produce some eye-catching yields. The downside is that its payouts have moved around a lot, making them less reliable than those from Woodside or Santos. Investors need to be comfortable with that volatility before relying on Yancoal for income.

Foolish takeaway

If you are seeking income, the energy sector still offers some attractive options. Woodside continues to deliver solid, well-backed dividends, Santos is shaping up to return more cash to shareholders, and Yancoal's past payouts have produced some striking yields.

Just keep in mind that a high yield only matters if the business can sustain it over the long haul.

Nevertheless, I believe these ASX energy shares deserve a spot on the December watchlist for those dividend hunters.

The post Dividend investors: Premier ASX energy shares to buy in December appeared first on The Motley Fool Australia.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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