Pioneer Natural Resources (NYSE: PXD) paid out a gusher of dividends last year. The oil company capitalized on higher crude prices to generate a massive amount of free cash flow. It paid out about $26 per share, giving the stock more than a 10% yield.

The oil company could have an even bigger dividend in 2023. Fueling that view is the possibility that crude prices could skyrocket as OPEC keeps a tight lid on supplies even as Asian demand recovers when those economies fully reopen from pandemic-related lockdowns.

Pioneer established a fixed-plus-variable dividend toward the end of 2021. It pays a fixed base quarterly amount that it aims to grow each year. On top of that, there's a variable dividend of up to 75% of its excess free cash flow (FCF) each quarter after the base payment. That contributed to one of the highest payout ratios in the sector.

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Source Fool.com