2 High-Yield Dividend Stocks Worth Buying Right Now
Yahoo Finance ·
With the 10-Year Treasury now hovering near 4.8%, many income-seeking investors will likely be tempted to sell their dividend stocks and buy low-risk T-bills instead. That might seem like the prudent move, but Treasuries tend to underperform stocks over the long run. If you invest $1,000 in a 10-Year T-bill today at 4.8%, that investment will predictably grow to $1,480 when it matures. But if you invest that $1,000 in the S&P 500 ( ^GSPC -0.41% ) -- and assume it will maintain its historical annual growth rate of 10% -- that investment will have blossomed to about $2,640 with reinvested dividends. Therefore, if you can afford to lock up your cash in long-term Treasuries, it still makes more sense to park your cash in dividend stocks and tune out the near-term noise. If market downturns make you queasy but you still want stable dividends, consider these two high-yield stocks: ExxonMobil ( XOM -1.44% ) and Brookfield Renewable ( BEPC +0.80% ) . ExxonMobil is one of the world's largest integrated energy companies. It owns upstream, downstream, and midstream assets in over 56 countries. It gets most of its oil from the Permian Basin in the United States. Still, it's been expanding its presence in Guyana (one of the world's fastest-growing oil regions) and increasing its oil production in Asia and Africa. It's more exposed to the volatile Middle East than some of its peers, but it offsets that pressure with its growth in other regions and the expansion of its liquefied natural gas (LNG) business.
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