Exxon Mobil Corporation (XOM), Chevron Corporation (CVX): As Oil Prices Rise, Profit With These Stocks

ConocoPhillips (NYSE:COP) is in a period of transition following the spin-off of its downstream business.  Full-year 2012 adjusted earnings were $6.7 billion, or $5.37 per share, compared with full-year 2011 adjusted earnings of $8.0 billion, or $5.75 per share.  Along with its financial announcement, Conoco revealed its year-end proven reserves totaled 8.6 billion barrels of oil equivalent, giving the company a total reserve replacement ratio of 142 percent.

Conoco is a cash cow and uses that cash flow generation to handsomely reward its shareholders.  ConocoPhillips generated $14.7 billion in cash from operations last year and returned more than $8 billion to shareholders in the form of dividends and buybacks.  At recent prices, the stock is the highest yielding of the three, with a dividend yield exceeding 4.5% at recent prices.

The one-two punch of capital gains and fat dividends

If you’re frustrated by rising gas prices, you’re certainly not alone.  While there’s not much the average person can do to lower prices they pay at the pump, here’s the way to fight back.  These three Western oil majors have fantastic balance sheets, solid growth in revenue and profit, and generous shareholder policies.  These stocks will help insulate you from the continued rise in oil prices with dividend yields that beat the yield on the broader market.  You should expect profits from each of these stocks to keep pumping higher, along with global demand for oil.  Don’t let a higher gas bill get you down:  get even by investing in these fantastic stocks.

The article As Oil Prices Rise, Profit With These Stocks originally appeared on Fool.com.

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