Energy Business

Top Strategist Says Buy Dividend Energy Stocks in 2022 That Offer Inflation-Protected Yield

Conoco’s portfolio includes resource-rich North American tight oil and oil sands assets; lower-risk legacy assets in North America, Europe, Asia and Australia; various international developments; and an inventory of conventional and unconventional exploration prospects.

Many Wall Street analysts feel Conoco can accelerate growth from a reloaded portfolio depth in the Bakken and Eagle Ford, with visibility on future growth from a sizable position in the Permian.

Investors receive a 2.46% dividend. The BofA Securities price target is $90. The consensus price target for ConocoPhillips stock is $89.15. The stock was last seen trading Wednesday at $74.83.

EOG Resources

This leading energy firm shows up well on many Wall Street screens. EOG Resources Inc. (NYSE: EOG) is one of the largest independent exploration and production companies operating in the United States, Canada, Trinidad, the United Kingdom and China.

EOG has secured four years of drilling permits, while retaining flexibility to reallocate resources to other parts of the portfolio and off federal property. EOG has 3,000 locations not on federal lands, which most on Wall Street expect to expand through its exploration.

The dividend yield is 3.25%. The $110 price target at BofA Securities is less than the $111.06 consensus price target. EOG Resources stock closed at $93.05 Wednesday.

Exxon Mobil

Shares of this mega-cap energy leader backed up nicely as oil sold off in August, and they still offer investors an incredible entry point. Exxon Mobil Corp. (NYSE: XOM) is the world’s largest international integrated oil and gas company. It explores for and produces crude oil and natural gas in the United States, Canada, South America, Europe, Africa and elsewhere.

Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas and petroleum products.

The company has announced that ExxonMobil Catalysts and licensing has introduced ExxonMobil Renewable Diesel (EMRD) process technology to help meet the evolving needs for mobility, while utilizing renewable feedstock. This new process technology converts feedstocks including, but not limited to, vegetable oils, unconverted cooking oil and animal fats, into renewable diesel. Due to significant interest in producing renewable jet fuel as a primary product, Exxon is also developing advanced catalyst and process technology solutions that will offer EMRD process licensees flexibility to tailor the amount of jet fuel versus diesel produced.

Exxon Mobil stock investors receive a 5.55% dividend, which will continue to be defended. BofA Securities has set a $90 price target. The consensus target is just $71.52 and shares closed Wednesday at $63.48.

Even with interest rates undoubtedly going higher next year, most feel that the Federal Reserve will just be targeting two quarter-point moves, which would leave the federal funds rate still below 1%. That, combined with the tapering of the quantitative easing bond purchases will have an impact for sure, but not enough to discourage investors from buying these top companies.

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