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JP Morgan Sees Oil at $190 a Barrel or More: 7 Big Dividend Stocks to Buy Now

BP is also involved in the convenience and mobility business, which manages the sale of fuels to wholesale and retail customers, convenience products, aviation fuels, and Castrol lubricants. It is involved in refining, supply and trading of oil products, as well as operation of electric vehicle charging facilities. In addition, it produces and refines oil and gas, and it invests in upstream, downstream and alternative energy companies, as well as in advanced mobility, bio and low carbon products, carbon management, digital transformation and power and storage areas.

Shareholders receive a 4.80% yield. The Goldman Sachs price target for domestic shares of BP stock is $45. The $37.92 consensus target is closer to the most recent trade at $26.88.

Exxon Mobil

Despite the huge rally in oil, this mega-cap energy leader trades at levels printed in 2019 and offers investors an excellent entry point now. 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.

Top Wall Street analysts expect Exxon to remain a key beneficiary in this higher oil price environment, and most remain strongly positive about the company’s sharp positive inflection in capital allocation strategy, upstream portfolio, and leverage to a further demand recovery, with Exxon Mobil offering greater downstream/chemicals exposure relative to peers.

The company pays investors a 4.17% dividend, which will continue to be defended. BofA Securities has a $120 price target. The consensus target for Exxon Mobil stock is lower at $102.67, and shares closed on Tuesday at $84.50.

MPLX

This is the top holding for the Alerian MLP energy exchange-traded fund. MPLX L.P. (NYSE: MPLX) is primarily engaged in crude oil and refined products transportation and terminaling in the U.S. Midwest and Gulf Coast regions, as well as natural gas gathering and processing in the northeast from its prior acquisition of MarkWest Energy in 2015. MPLX was formed by independent U.S. refiner Marathon Petroleum.

The company’s assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks and associated piping; and crude and light-product marine terminals. It also owns crude oil and natural gas gathering systems and pipelines, as well as natural gas and natural gas liquids (NGL) processing and fractionation facilities in key U.S. supply basins.

Investors receive a 9.70% distribution. UBS’s $40 price target compares with a $37.50 consensus target. Tuesday’s closing share price for MPLX stock was $29.08.

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