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...
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