Top 5 High Dividend Stocks To Buy Now

4. Exxon Mobil Corporation (XOM)

Exxon Mobil is another major oil producer that found a spot in our list of best dividend stocks to buy. Exxon shares were trading above $70 at the beginning of this year and today you can get your hands on them for under $33. As a result of the sharp decline in oil prices and Exxon’s share price, XOM shares offer an annualized dividend yield of 11%. That’s not a typo. This isn’t a triple leveraged mortgage backed security. It is one of the biggest oil companies in the world. Sure, Exxon failed to increase its dividend for the first time in 38 years, but at least it didn’t cut it sharply. Broyhill Asset Management said the following about Exxon in its Q1 investor letter:

“As if a global pandemic wasn’t enough, during the quarter OPEC and Russia decided to add an oil crisis to the list of things for investors to panic about. After oil’s largest one-day decline in history, we established a small position in Exxon Mobile (XOM) and British Petroleum (BP)—two of the largest, best managed, and well capitalized companies in the industry.

We don’t have a short-term view on oil, but we do know that the best cure for low oil prices is low oil prices. And with the sector trading at its lowest level relative to the market in history, we are willing to bet that the current extremes in negative sentiment will revert to more normal levels—and more normal oil prices—at some point. In the interim, we are being paid 10% annually to wait.”

There were a total of 53 hedge funds with bullish XOM bets at the end of June.