Chevron and Exxon Stocks: Two of the Best Dividend Stocks, Have Consistent Yields Despite Being in a Risky Industry

Exxon Stock

Exxon Stock (NYSE:XOM)

The dividend yields of two of the most well-known companies in the energy industry, oil giants Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM), have increased over the course of the last few weeks.

Recent weakness in the oil sector can be attributed to worries about a slowing global economy as well as a strengthening dollar in the United States. Because of this, momentum traders have been forced to sell their positions, but income investors can take advantage of the lower share prices to generate higher yields on their investments. Despite this, it is more important than ever to limit your investment focus to dividend stocks that are supported by solid and consistent fundamentals.

As a result of falling share prices, dividend stocks tend to have higher yields.

About a month and a half ago, the magazine Income Investor focused on Chevron.

At that time, the stock was recovering from a mixed earnings report, a dividend increase, and a controversial announcement regarding the repurchase of $75 billion worth of shares. At that time, the dividend yield was at 3.26%, but because share prices have fallen since then, Chevron now yields an impressive 3.75%.

Although Chevron and other dividend stocks are susceptible to shifts in the price of oil, the company’s balance sheet continues to be rock solid, as evidenced by S&P Global’s “AA-” bond rating for the company. Additionally, it has increased its dividends for the past 36 years in a row.

The price of the stock has recently fallen from a base, and it is currently trading at a level that is lower than both the 50-day and the 200-day moving averages. Consequently, now is not the best time to buy the stock. However, if the share price continues to drop, investors will very soon be looking at a stable company that offers a sizeable yield of 4% if the share price continues to fall.

Exxon is Proud to Announce 41 Consecutive Years of Dividend Increases

The Exxon Mobil dividend stock has been performing quite admirably as of late. Exxon stock reached a buy point on January 26, but it has been trading sideways ever since it beat both the top and bottom line estimates for the fourth quarter of 2022 on January 31.

Although Exxon stock has performed poorly so far this week, it is still able to find support at the 50-day moving average. A bounce in this location could therefore provide a nice entry point.

At the moment, Exxon has a dividend yield of 3.27%, and it has increased its payout every year for the past 41 years in a row.

Both Chevron and Exxon are well-established companies in the energy industry, and their dividend stocks offer investors a low-risk opportunity to participate in the sector’s potential upside. Both of these companies are managed effectively and pay reliable dividends, but their respective stock prices will continue to be heavily influenced by the ebb and flow of the energy market.

Next on the list of top high-dividend stock picks of billionaire Ken Griffin is the American multinational energy company Exxon Mobil Corporation (NYSE:XOM). Exxon Mobil Corporation is a publicly traded company. The dividends paid by the company have increased annually for the past four decades in a row. As of February 17, it carries a dividend yield of 3.27% and is currently distributing a quarterly dividend per share that amounts to $0.91.

During the last three months of 2010, Citadel Investment Group opened an investment account with Exxon Mobil Corporation (NYSE:XOM), initially purchasing shares with a value of more than 48 million dollars. After making a 791 percent increase in its stake in the company during the most recent reporting period, the hedge fund’s holdings in XOM were valued at close to $171 million. The firm’s 13F portfolio included the company as a holding in 0.03% of its total holdings.

At the end of the third quarter of 2022, the number of hedge funds tracked by Insider Monkey that owned shares of Exxon Mobil Corporation (NYSE:XOM) rose to 75, from 72 in the second quarter of 2022. There is a total value of $5.5 billion associated with these stakes. GQG Partners had the largest stake in the company, which was worth close to three billion dollars.

Featured Image: Unsplash @ Sébastien Jermer

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