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Exploring Energy Investments: Diving Into 3 Alternatives to ExxonMobil Exploring Energy Investments: Diving Into 3 Alternatives to ExxonMobil

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ExxonMobil (NYSE: XOM) is a stalwart in the oil industry, showcasing consistent growth across vital metrics and boasting an impressive dividend growth streak of 41 years. However, the spotlight may now shift to other energy stocks that are catching the eye of several contributors on Fool.com. Chevron (NYSE: CVX), Enterprise Products Partners (NYSE: EPD), and Enbridge (NYSE: ENB) are emerging as compelling options for investors mulling over ExxonMobil.

Chevron: A Compelling Case for Yield and Stability

Reuben Gregg Brewer (Chevron): While ExxonMobil stands tall with a significant market cap, Chevron offers a lower leverage ratio and a higher dividend yield, making it an attractive prospect for investors seeking stability. With a debt-to-equity ratio of 0.12 compared to ExxonMobil’s 0.18, Chevron demonstrates a stronger balance sheet, particularly crucial in the volatile oil industry. Moreover, Chevron’s 4.3% dividend yield outshines ExxonMobil’s 3.6%, making it a more appealing dividend stock.

Enterprise Products Partners: A Dominant Yielding Contender

Neha Chamaria (Enterprise Products Partners): While ExxonMobil shines with its lengthy dividend growth history, Enterprise Products Partners offers an enticing alternative. With a dividend growth streak spanning 25 years and a robust 7.2% yield, double that of ExxonMobil, Enterprise Products Partners proves its mettle in rewarding investors. Boasting stable cash flows and strong financials, the company’s focus on the midstream oil and gas sector provides a reliable income stream even amidst market fluctuations.

Enbridge: A Haven of Stability in Energy Investing

Matt DiLallo (Enbridge): Unlike ExxonMobil, Enbridge operates in a realm of stability, insulated from commodity price swings. With nearly all its earnings stemming from secure cost-of-service arrangements and long-term contracts, Enbridge offers a consistent revenue stream and reliable cash flows. The company’s dividend growth streak of 29 years, paired with a 7.7% yield, underscores its commitment to rewarding investors while minimizing risk in the energy sector.

Should you invest $1,000 in ExxonMobil right now?

Before considering ExxonMobil, it’s worth noting that the Motley Fool Stock Advisor team has identified the top 10 stocks that hold potential for substantial returns, with ExxonMobil not making the cut. Their track record of significant returns suggests other lucrative options in the market for astute investors seeking growth.

Stock Advisor serves as a beacon for investors, offering expert insights, portfolio-building strategies, analyst updates, and bimonthly stock recommendations that have outperformed the S&P 500 since 2002*.

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*Stock Advisor returns as of March 8, 2024

Matt DiLallo holds positions in Chevron, Enbridge, and Enterprise Products Partners. Neha Chamaria has no investment in the mentioned stocks. Reuben Gregg Brewer is invested in Enbridge. The Motley Fool has positions in and recommends Chevron and Enbridge, also recommending Enterprise Products Partners. The Motley Fool upholds a disclosure policy.

The opinions expressed in this article are solely those of the author and may not reflect the viewpoints of Nasdaq, Inc.

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