4 Energy Stocks with Impressive Dividend Histories for Long-Term Investors
The ongoing geopolitical conflict in the Middle East has caused oil and natural gas prices to fluctuate wildly. However, history suggests that this volatility is normal for the energy sector.
Long-term investors should focus on reliable dividend-paying stocks within the industry. ExxonMobil (XOM) and Chevron (CVX) are two of the top choices due to their impressive dividend histories. Exxon has a 2.6% yield backed by 43 annual dividend increases, while Chevron boasts a 3.7% yield with 38 annual increases.
For those who want to avoid direct commodity exposure, midstream sector stocks such as Enterprise Products Partners (EPD) and Enbridge (ENB) offer attractive dividend yields of up to 5.7%. These companies own energy infrastructure like pipelines that charge fees for the use of their assets, making them less susceptible to price swings.
Both Enterprise and Enbridge have a strong track record of annual distribution increases, with Enterprise boasting 27 years and Enbridge having achieved 31 consecutive years.