PSXP - Forget ConocoPhillips: Here Are 2 Better Dividend Stocks in the Oil Industry
The market's been unkind to oil producers such as ConocoPhillips (NYSE: COP) thanks to the collapse in oil prices. In fact, Conoco's stock has fallen so far that dividend investors might be tempted by its current 4.4% yield.
Watch out, though. The last time oil prices were this low, Conoco slashed its dividend by two-thirds, and although the company's balance sheet is on firmer footing now, there's no guarantee that it won't happen again. Instead, investors should consider two other companies in the oil and gas industry. Both have seen their dividend yields soar in recent days but are better positioned than Conoco to weather an oil price downturn without sacrificing their dividends.
Here's why you should look at ExxonMobil (NYSE: XOM) and Phillips 66 (NYSE: PSX) instead of ConocoPhillips.