Analysis of High-Yield Stock Investment Prospects
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Brookfield Renewable: Brookfield Renewable boasts a dividend yield exceeding 4%, significantly higher than the S&P 500's 1.1%, and anticipates annual growth of 5% to 9%, which will drive its funds from operations to grow at over 10%, enhancing its competitive edge in the renewable energy market.
- ExxonMobil's Stable Growth: ExxonMobil's dividend yield is nearly 3%, having increased dividends for 43 consecutive years, and expects to achieve $25 billion in earnings growth and $35 billion in free cash flow growth by 2030, supporting ongoing dividend increases and share repurchase plans.
- Williams' Infrastructure Investment: Williams offers a dividend yield close to 3%, and while it hasn't increased dividends every year, it has grown payouts at a 5% compound annual rate since 2020, investing over $7 billion to expand its natural gas pipeline infrastructure to meet surging demand.
- Long-Term Investment Potential: Brookfield, ExxonMobil, and Williams expect double-digit annual earnings growth in the coming years, which will support continued dividend increases and healthy stock price growth, making them ideal high-yield stock investments for the long term.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy XOM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 140.920
Low
114.00
Averages
132.17
High
158.00
Current: 140.920
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Exxon Mobil Submits New Exploration Plan for Guyana's Stabroek Block
- New Exploration Plan: Exxon Mobil (XOM) has submitted a new exploration and appraisal program to the Guyana Environmental Protection Agency, which could involve drilling up to 35 new wells, with operations set to commence in 2028 and run through 2033, indicating the company's long-term commitment to resource development in the region.
- Environmental Impact Assessment: Although the proposed project will not significantly impact the environment and thus does not require an environmental impact assessment, a cumulative impact assessment must be filed, reflecting the company's cautious approach to environmental compliance and helping to maintain its public image.
- Economic Growth Driver: Exxon’s operations in the Stabroek block are driving rapid economic growth in Guyana, with current crude oil production exceeding 900,000 barrels per day and on track to expand to 1.7 million barrels per day by 2030, further solidifying its position in the global energy market.
- Ownership Structure: Exxon Mobil holds a 45% stake in the block, operating alongside Chevron (CVX) with 30% and China's CNOOC with 25%, highlighting its significant role in international energy collaboration.
See More
Analysis of High-Yield Stock Investment Prospects
- Brookfield Renewable: Brookfield Renewable boasts a dividend yield exceeding 4%, significantly higher than the S&P 500's 1.1%, and anticipates annual growth of 5% to 9%, which will drive its funds from operations to grow at over 10%, enhancing its competitive edge in the renewable energy market.
- ExxonMobil's Stable Growth: ExxonMobil's dividend yield is nearly 3%, having increased dividends for 43 consecutive years, and expects to achieve $25 billion in earnings growth and $35 billion in free cash flow growth by 2030, supporting ongoing dividend increases and share repurchase plans.
- Williams' Infrastructure Investment: Williams offers a dividend yield close to 3%, and while it hasn't increased dividends every year, it has grown payouts at a 5% compound annual rate since 2020, investing over $7 billion to expand its natural gas pipeline infrastructure to meet surging demand.
- Long-Term Investment Potential: Brookfield, ExxonMobil, and Williams expect double-digit annual earnings growth in the coming years, which will support continued dividend increases and healthy stock price growth, making them ideal high-yield stock investments for the long term.
See More
Brookfield Renewable Expects Over 10% Annual Earnings Growth
- Earnings Growth Outlook: Brookfield Renewable anticipates annual earnings growth exceeding 10% through 2031, driven by inflation-linked rate increases, new renewable energy projects, and acquisitions, thereby enhancing its competitive position in the market.
- Strong Dividend Returns: Brookfield offers a dividend yield over 4%, having increased its payout by at least 5% annually since 2011, and expects future dividends to grow at a rate of 5% to 9%, reflecting its robust cash flow and profitability.
- ExxonMobil's Growth Potential: ExxonMobil expects to achieve $25 billion in earnings growth and $35 billion in free cash flow growth by 2030, with an average annual earnings growth rate of 13%, which will support ongoing dividend increases and share repurchase plans.
- Williams' Infrastructure Investment: Williams is significantly investing in natural gas pipeline infrastructure, expecting earnings growth to exceed 10% annually through 2030, which will fuel its dividend growth while meeting the surging demand for natural gas.
See More
Trump Predicts Oil Prices Will Plummet Post-War
- Oil Price Forecast: President Trump predicts that oil prices will drop sharply after the war, potentially returning to the $65 to $74 range; however, due to infrastructure damage from combat, prices may hover between $80 and $90 for the next two years, indicating market uncertainty and concerns over future supply.
- Energy Stock Investment: Despite oil price fluctuations, analysts remain bullish on energy stocks, particularly oil and gas, as they constitute only 3.5% of the S&P 500 Index, while investor allocations are nearly double, reflecting confidence in the energy sector and potential growth opportunities.
- Diamondback Energy: Diamondback Energy Inc. (FANG) reported a profit of approximately $1.7 billion last year, with expectations to surge to $5.6 billion this year, and 28 out of 31 analysts recommend the stock, highlighting its competitive advantage amid geopolitical uncertainty.
- TotalEnergies Growth: TotalEnergies SE (TTE) aims to increase its renewable energy generation capacity from 34 gigawatts to 100 gigawatts by 2030, demonstrating its strategic positioning in the renewable energy sector and enhancing its market competitiveness.
See More
Exxon Mobil Strikes Preliminary LNG Deal with South Africa
- Strategic Goal Advancement: Exxon Mobil has struck a preliminary deal to supply liquefied natural gas (LNG) to South Africa, aiming to support the country's coal-reliant power grid and double its LNG supplies to over 40 million tons per year by 2030.
- Power Supply Improvement: The LNG will be utilized at a 3,000 MW power plant near the proposed Zululand LNG terminal in Richards Bay, which is yet to be constructed, enhancing the reliability of South Africa's electricity supply while reducing its dependence on coal, which currently accounts for about 80% of power generation.
- Natural Gas Supply Challenges: South Africa produces little natural gas domestically and faces delays in gas turbine deliveries from suppliers like Siemens and General Electric, creating a pressing need for external LNG supplies to meet electricity demands during the transition.
- Emission Reduction Goals: By introducing LNG, South Africa aims to improve power supply reliability while gradually reducing greenhouse gas emissions, aligning with global energy transition trends and demonstrating a commitment to sustainable development.
See More
Bank of America Upgrades Exxon Mobil to Buy Amid Oil Price Volatility
- Rating Upgrade: Bank of America upgraded Exxon Mobil (XOM) from Neutral to Buy with a price target of $154, believing that the recent stock pullback positions it to price Brent crude at $65/bbl long-term with minimal fundamental downside.
- Cash Flow Growth: Exxon's solid execution in the Permian Basin provides a clear long-term growth trajectory, with an expected annualized increase of ~$3.3 billion in free cash flow at $70/bbl Brent crude, as 20% of its volume comes from the Middle East.
- Middle East Opportunities: The reopening of the Strait of Hormuz presents Exxon with significant benefits, particularly in a post-conflict world where its fully integrated footprint enhances negotiating power in Qatar and other Middle Eastern countries.
- Renewable Energy Outlook: BofA highlighted Exxon's peer-leading exposure in downstream and renewables, which is likely to drive growth in the coming decades, especially amid increasing volatility in the global energy market.
See More
Exxon Mobil Submits New Exploration Plan for Guyana's Stabroek Block
- New Exploration Plan: Exxon Mobil (XOM) has submitted a new exploration and appraisal program to the Guyana Environmental Protection Agency, which could involve drilling up to 35 new wells, with operations set to commence in 2028 and run through 2033, indicating the company's long-term commitment to resource development in the region.
- Environmental Impact Assessment: Although the proposed project will not significantly impact the environment and thus does not require an environmental impact assessment, a cumulative impact assessment must be filed, reflecting the company's cautious approach to environmental compliance and helping to maintain its public image.
- Economic Growth Driver: Exxon’s operations in the Stabroek block are driving rapid economic growth in Guyana, with current crude oil production exceeding 900,000 barrels per day and on track to expand to 1.7 million barrels per day by 2030, further solidifying its position in the global energy market.
- Ownership Structure: Exxon Mobil holds a 45% stake in the block, operating alongside Chevron (CVX) with 30% and China's CNOOC with 25%, highlighting its significant role in international energy collaboration.
See More
Analysis of High-Yield Stock Investment Prospects
- Brookfield Renewable: Brookfield Renewable boasts a dividend yield exceeding 4%, significantly higher than the S&P 500's 1.1%, and anticipates annual growth of 5% to 9%, which will drive its funds from operations to grow at over 10%, enhancing its competitive edge in the renewable energy market.
- ExxonMobil's Stable Growth: ExxonMobil's dividend yield is nearly 3%, having increased dividends for 43 consecutive years, and expects to achieve $25 billion in earnings growth and $35 billion in free cash flow growth by 2030, supporting ongoing dividend increases and share repurchase plans.
- Williams' Infrastructure Investment: Williams offers a dividend yield close to 3%, and while it hasn't increased dividends every year, it has grown payouts at a 5% compound annual rate since 2020, investing over $7 billion to expand its natural gas pipeline infrastructure to meet surging demand.
- Long-Term Investment Potential: Brookfield, ExxonMobil, and Williams expect double-digit annual earnings growth in the coming years, which will support continued dividend increases and healthy stock price growth, making them ideal high-yield stock investments for the long term.
See More
Brookfield Renewable Expects Over 10% Annual Earnings Growth
- Earnings Growth Outlook: Brookfield Renewable anticipates annual earnings growth exceeding 10% through 2031, driven by inflation-linked rate increases, new renewable energy projects, and acquisitions, thereby enhancing its competitive position in the market.
- Strong Dividend Returns: Brookfield offers a dividend yield over 4%, having increased its payout by at least 5% annually since 2011, and expects future dividends to grow at a rate of 5% to 9%, reflecting its robust cash flow and profitability.
- ExxonMobil's Growth Potential: ExxonMobil expects to achieve $25 billion in earnings growth and $35 billion in free cash flow growth by 2030, with an average annual earnings growth rate of 13%, which will support ongoing dividend increases and share repurchase plans.
- Williams' Infrastructure Investment: Williams is significantly investing in natural gas pipeline infrastructure, expecting earnings growth to exceed 10% annually through 2030, which will fuel its dividend growth while meeting the surging demand for natural gas.
See More
Trump Predicts Oil Prices Will Plummet Post-War
- Oil Price Forecast: President Trump predicts that oil prices will drop sharply after the war, potentially returning to the $65 to $74 range; however, due to infrastructure damage from combat, prices may hover between $80 and $90 for the next two years, indicating market uncertainty and concerns over future supply.
- Energy Stock Investment: Despite oil price fluctuations, analysts remain bullish on energy stocks, particularly oil and gas, as they constitute only 3.5% of the S&P 500 Index, while investor allocations are nearly double, reflecting confidence in the energy sector and potential growth opportunities.
- Diamondback Energy: Diamondback Energy Inc. (FANG) reported a profit of approximately $1.7 billion last year, with expectations to surge to $5.6 billion this year, and 28 out of 31 analysts recommend the stock, highlighting its competitive advantage amid geopolitical uncertainty.
- TotalEnergies Growth: TotalEnergies SE (TTE) aims to increase its renewable energy generation capacity from 34 gigawatts to 100 gigawatts by 2030, demonstrating its strategic positioning in the renewable energy sector and enhancing its market competitiveness.
See More
Exxon Mobil Strikes Preliminary LNG Deal with South Africa
- Strategic Goal Advancement: Exxon Mobil has struck a preliminary deal to supply liquefied natural gas (LNG) to South Africa, aiming to support the country's coal-reliant power grid and double its LNG supplies to over 40 million tons per year by 2030.
- Power Supply Improvement: The LNG will be utilized at a 3,000 MW power plant near the proposed Zululand LNG terminal in Richards Bay, which is yet to be constructed, enhancing the reliability of South Africa's electricity supply while reducing its dependence on coal, which currently accounts for about 80% of power generation.
- Natural Gas Supply Challenges: South Africa produces little natural gas domestically and faces delays in gas turbine deliveries from suppliers like Siemens and General Electric, creating a pressing need for external LNG supplies to meet electricity demands during the transition.
- Emission Reduction Goals: By introducing LNG, South Africa aims to improve power supply reliability while gradually reducing greenhouse gas emissions, aligning with global energy transition trends and demonstrating a commitment to sustainable development.
See More
Bank of America Upgrades Exxon Mobil to Buy Amid Oil Price Volatility
- Rating Upgrade: Bank of America upgraded Exxon Mobil (XOM) from Neutral to Buy with a price target of $154, believing that the recent stock pullback positions it to price Brent crude at $65/bbl long-term with minimal fundamental downside.
- Cash Flow Growth: Exxon's solid execution in the Permian Basin provides a clear long-term growth trajectory, with an expected annualized increase of ~$3.3 billion in free cash flow at $70/bbl Brent crude, as 20% of its volume comes from the Middle East.
- Middle East Opportunities: The reopening of the Strait of Hormuz presents Exxon with significant benefits, particularly in a post-conflict world where its fully integrated footprint enhances negotiating power in Qatar and other Middle Eastern countries.
- Renewable Energy Outlook: BofA highlighted Exxon's peer-leading exposure in downstream and renewables, which is likely to drive growth in the coming decades, especially amid increasing volatility in the global energy market.
See More
