3 Energy Stocks That Are Passive Income All-Stars
The energy sector is cyclical, often going through gut-wrenching ups and downs that make it hard for even those with strong stomachs to watch the gyrations. ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX), and TotalEnergies (NYSE: TTE), however, have proven that they understand investor desires for reliable passive income streams. All three are worth a closer look if you want to add some energy exposure to your portfolio today.
Although clearly not interchangeable, Exxon and Chevron share a lot of similarities. For example, they are both U.S.-based integrated energy giants that operate on a global scale. They are both continuing to largely focus on their core oil and natural gas operations, even as some peers make a concerted effort to embrace clean energy operations. And they both have decades of annual increases under their belts.
To put some numbers on that, Exxon has increased its dividend annually for 40 consecutive years. Chevron has hiked its payout for 35 years and counting. That makes them both Dividend Aristocrats, a highly elite group of companies that clearly believe in rewarding investors with regular dividend increases. What's so impressive about this, however, is that the energy sector is highly cyclical, so the dividend growth here has withstood numerous industry downturns, including the pandemic-led drop in 2020.
Source Fool.com
