Forget Royal Dutch Shell -- Here Are 2 Better Dividend Stocks
Royal Dutch Shell (NYSE: RDS.B), one of the largest oil and natural gas companies on planet Earth, cut its dividend after decades of supporting it through good and bad markets. The move shocked dividend investing circles, with concerns that it would lead to a wave of cuts in the energy space. Although that hasn't happened yet, it pays to err on the side of caution. Here are two better dividend stocks from the energy space that are paying investors well and are conservatively financed.
When it comes to investing, diversification is a huge benefit. It's one of the reasons why you would want to own an energy company with a global portfolio of assets spread across the energy sector, from the upstream (drilling) area to the downstream (chemicals and refining) space. Shell, which trimmed its dividend 66% in early 2020, was one of a small collection of companies that offered just such diversification. That was clearly not enough to save dividend-focused investors from a big cut, however. U.S.-based peer Chevron (NYSE: CVX) is a better option.
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