Best Dividend Stocks: Chevron And Exxon Offer Stable Yields In Volatile Sector

Fears of a softening world economy and stronger U.S. dollar have led to recent weakness in the oil sector. This has forced momentum traders to hit the exits but income investors can take advantage of lower share prices to generate higher yields. Even so, its more important than ever to stick with dividend stocks backed by strong and stable fundamentals.

Oil giants Chevron (CVX) and Exxon Mobil (XOM), two of the energy sector's best-known names, have seen their yields climb over the past few weeks. While Chevron and other dividend stocks are sensitive to fluctuations in oil prices, the company's balance sheet remains rock-solid, with an "AA-" bond rating from S&P Global. It also boasts 36 straight years of dividend increases. Dividend stock Exxon Mobil has been fairing well recently. The stock hit a buy point on Jan. 26 but has gone sideways since beating Q4 2022 top and bottom line estimates on Jan 31.

Source: Investor's Business Daily

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