Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Investors love dividend stocks for one simple reason. Buying and holding a stock that generates passive income is the investor’s version of having your cake and eating it too. With that said, no dividend is ever guaranteed, so passive income investors need to build a diverse portfolio in multiple sectors. Analysts believe these stocks are worth considering if you’re looking for dividends in the energy sector.
Don’t Miss:
Chevron is one of the world’s bona fide petroleum giants and its impact on the petroleum, natural gas, and even geothermal energy sectors is hard to overstate. They have retail gas outlets in many U.S. states and drilling and refinery outposts all over the globe. Despite the potential threat posed by carbon emissions, much of the world’s automotive, aviation, and shipping industries are powered by Chevron products.
With the decidedly pro-fossil fuel Trump Administration set to take office in January, many energy sector analysts are betting that stocks like Chevron will continue to perform well. Chevron is coming off a strong Q3 2024, highlighted by $51 billion in revenue and earnings per share (EPS) of $2.51, which beat the consensus expectation of $2.47. This $161.50 stock is paying a 4% dividend, or about $1.60 per share. Conditions are ripe for an even bigger 2025.
See Also: Deloitte’s fastest-growing software company partners with Amazon, Walmart & Target – Last Chance to get 4,000 of its pre-IPO shares for just $0.26/share!
Texas-based ExxonMobil has been ubiquitous in the oil and gas sector for several decades. According to its most recent quarterly reports, ExxonMobil pumps over 4.5 million barrels daily. Its market cap exceeds $530 billion, making it the largest player in the sector. ExxonMobil is a member of the S&P 500 and has increased its dividend for 42 straight years, making it a confirmed dividend aristocrat.
2024 has been a big year for ExxonMobil, and its share price has been strong for several years. ExxonMobil’s share price has exploded from $68.13 in 2019 to its current price of $121.79. That represents a five-year increase of over 78%. As for the dividend, ExxonMobil is currently paying 3.27% or $3.98 per share.
Trending: The Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. Earn a 1% return boost on your first EquityMultiple investment when you sign up here (accredited investors only).
Although the petroleum and fossil fuel sectors look set for strong growth in 2025, overloading your portfolio with oil stocks could still be counterproductive. You may consider diversifying with dividend stocks from other energy sectors. Entergy is a Louisiana-based energy company that provides power for over three million residents in Texas, Mississippi, Arkansas, and Louisiana.
It’s also one of the largest nuclear energy providers in the country. Aside from Entergy’s sizable customer base, which provides it with ongoing revenue, Entergy’s nuclear power capabilities give it tremendous potential as a fuel source for AI. This has been a big factor in pushing Entergy’s share price up almost 50% in the last 12 months, and many believe there is still room for growth.
Benzinga’s analyst profile of Entergy stock shows that most of its 17 analysts give it a “buy” rating. BMO Capital, Mizuho, and Barclays set new price targets for Entergy on Nov. 18, with the average of the three targets coming in at $158.67. That’s about a 5% potential upside compared to the current share price of $151.06. Entergy also pays a 3.17% dividend, or $4.79 per share. Keep an eye on this stock.
Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
The changing interest rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider.
For instance, the Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000. Benzinga Readers: Earn a 1% return boost on your first EquityMultiple investment when you sign up here (accredited investors only).
Don’t miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga’s favorite high-yield offerings.
This article These High-Dividend Energy Stocks Could Supercharge Your Passive Income Portfolio originally appeared on Benzinga.com