The selective synthesis of SWCNTs with narrow chirality and diameter distribution by methane decomposition over a Co–MgO catalyst is reported. Raman spectroscopy, temperature programmed oxidation (TPO), UV–Vis–NIR absorption spectroscopy, and nitrogen physisorption were used to probe SWCNTs morphology, reaction selectivity, SWCNTs chirality and diameter distribution, and carbon yield. The catalyst was examined by nitrogen physisorption, X-ray diffraction (XRD), temperature programmed reduction (TPR), and UV–Vis-diffuse reflectance spectroscopy to elucidate the structure and chemical state of the species responsible for SWCNT growth. The results established a clear link between the degree of dispersion of Co species inside the MgO lattice and the catalyst activity and selectivity for SWCNT growth. High dispersion and stabilization of Co species influenced catalytic activity for methane decomposition and the high SWCNT selectivity. The yield of carbon and SWCNT selectivity increased with an increase in temperature, however, SWCNTs diameter distribution shifts to larger diameter tubes as synthesis temperature was increased.