Top 5 Dividend Stocks To Buy in 2021

3. Exxon Mobil Corp. (XOM)

Dividend Yield: 6.17%

Exxon is a leader in the oil and gas industry. They were met with setbacks during the pandemic and were forced to restrategize their investment plan. But they pivoted with the unexpected, and now they seem to be headed in the right direction. If you are looking for an oil and gas company with a high dividend yield that you can trust to stick around, choose Exxon.

Here is what First Eagle Investment Management has to say about Exxon Mobil Corporation in their Q1 2021 investor letter:

“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. Recovering oil prices on improvements in demand for crude and other distillates helped fuel strong performance across the energy complex, including shares of Exxon Mobil. The company’s financial results have improved markedly from the Covid-related demand shocks in 2020, helping ease concerns about the sustainability of Exxon’s dividend, which is among the largest in the S&P 500 Index. In addition, Exxon has reiterated its commitment to reducing capital expenditures, which we believe should further bolster the resilience of its cash flows against future demand slowdowns.”

We should note that First Eagle was bullish about Exxon before the stock took off in Q4. Here is what they said in their 2020 Q3 investor letter:

“The stock of Exxon Mobil continued to struggle in the third quarter, and it lost roughly half its market cap year to date. Despite this, we believed Exxon Mobil was well-equipped to contend with lower prices and remained a compelling investment. The company demonstrated high levels of operational flexibility during the difficult market environment and maintained an upward drift in earnings power. Its high-quality, long-duration assets occupy attractive positions on the cost curve.”