Exxon Mobil Corporation (NYSE:XOM) isn’t looking to jump ship. It expects natural gas to unseat coal as the second most used energy source over the coming decades. That means increased demand and shortly thereafter likely increased prices. And the company has the fortitude and money to wait.
While commodity prices keep the top and bottom lines variable, the dividend has been increased annually for years. Conservative investors looking for energy exposure should like the stock. However, the 2.5% dividend yield is on the low side. Investors seeking more income might consider similarly situated Royal Dutch Shell, where the 5% dividend should more than offset any additional risks associated with the stock.
It matters a great deal where investors start their search process. For some it’s a stock screen. However, using a mutual fund’s holdings can provide a pre-approved list of options that can save investors time and energy. General Electric Company (NYSE:GE), Pfizer Inc. (NYSE:PFE), and Exxon Mobil Corporation (NYSE:XOM) all have BlackRock’s dividend seal of approval.
Reuben Brewer has no position in any stocks mentioned. The Motley Fool owns shares of General Electric Company (NYSE:GE) Company.