Better Dividend Stock: Enbridge vs. Exxon
ExxonMobil (NYSE: XOM) has a yield of 5.8% backed by more than 35 years of annual dividend increases. Enbridge (NYSE: ENB) has a yield of 7% with over 25 years of yearly dividend hikes. They are both energy companies, but they aren't interchangeable. Here's some important things to consider as you look at this pair of high-yield dividend stocks.
Exxon is what's known as an integrated energy company, which means that it has operations that span from drilling for oil (upstream) to processing it (downstream), and everything in between. The hope is that this vertical integration will smooth out performance over time in what is basically a commodity business, since weak oil prices are usually a benefit to the downstream sector. This has generally worked out well over time, though the commodity nature of the energy sector can still lead to massive swings in Exxon's financial results.
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Source Fool.com
