ExxonMobil and Brookfield Renewable Offer High-Yield Dividend Stocks in Frothy Market

Investors seeking high-yield dividend stocks may be tempted to switch to low-risk Treasury bills due to the rising interest rates. However, studies show that Treasuries tend to underperform stocks over the long run. If investors lock up their cash in long-term Treasuries at 4.8%, they will only earn $1,480 when it matures after a decade. In contrast, investing $1,000 in the S&P 500 with historical annual growth of 10% could bloom to around $2,640 with reinvested dividends.

ExxonMobil and Brookfield Renewable are two high-yield dividend stocks worth considering for income-seeking investors. ExxonMobil is one of the world's largest integrated energy companies, operating in over 56 countries. It has been expanding its presence in Guyana and increasing oil production in Asia and Africa. The company plans to increase its oil and gas production by nearly 3% annually through 2030.

ExxonMobil has raised its dividend annually for 43 consecutive years, covering its dividends with profits since 2021. Its forward yield is 2.5%, making it a cheap play in a frothy market. It trades at just 15 times forward earnings.

Brookfield Renewable builds hydroelectric dams, wind farms, solar power plants, and other utility-scale green energy projects across 25 countries. The company has secured long-term renewable power agreements with tech giants like Microsoft, Amazon, and Alphabet's Google. Roughly 90% of Brookfield's revenue comes from fixed-price contracts.