Latest news with #KathyMikells
Globe and Mail
16 hours ago
- Business
- Globe and Mail
2 Top High-Yield Dividend Stocks You Can Confidently Buy and Hold Until at Least 2030
Investing in high-yielding dividend stocks has benefits and drawbacks. On the plus side, they pay lucrative dividends, making them an excellent way to generate passive income. However, a negative is that many companies have high-yielding dividends because they have nothing better to do with their free cash flow than funnel it back to shareholders. That's not true with ExxonMobil (NYSE: XOM) or Kinder Morgan (NYSE: KMI). They're also investing heavily in growth projects over the next five years. Because of that, you can confidently buy and hold these energy stocks to collect their high-yielding dividends that should steadily rise through at least 2030. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » A bold plan to 2030 ExxonMobil is a preeminent dividend stock. The oil giant has increased its dividend payment for 42 straight years. That leads the oil industry and is a record that only 4% of companies in the S&P 500 have achieved. "And we plan for that track record to continue for decades to come," stated CFO Kathy Mikells on Exxon's fourth-quarter earnings conference call. She noted that continuing to deliver dividend growth is "only possible by investing in the high-quality growth opportunities that drive leading returns and higher cash flows." The oil giant plans to invest $140 billion into major projects and its Permian Basin development program through 2030. It expects "this capital to generate returns of more than 30% over the life of the investments," stated CEO Darren Woods in the press release unveiling its plan to 2030. That level of investment and returns has the potential to deliver incremental growth of $20 billion in earnings and $30 billion in cash flow by 2030, assuming oil prices average around $60 a barrel (below the current price point). That's a 10% compound annual growth rate for its earnings and an 8% growth rate for cash flow from last year's baseline. Exxon estimates that this plan could produce a staggering $165 billion in surplus cash through 2030. The company can use the money to increase shareholder distributions by growing the dividend and continuing to buy back boatloads of its stock. It's aiming to repurchase $20 billion of its shares this year and another $20 billion in 2026, assuming reasonable market conditions. Given Exxon's track record and visible earnings growth through 2030, it seems safe to assume it can continue growing its dividend, which yields nearly 4%, throughout this period. A growing growth pipeline Kinder Morgan extended its dividend growth streak to eight straight years in 2025. The pipeline company's payout, which yields over 4%, should continue growing for at least the next five years. Several factors drive that view. For starters, the company has highly contracted and predictable cash flows. Only 5% of its cash flow is exposed to commodity prices, and another 26% is subject to volume risk. Take-or-pay agreements or hedging contracts that guarantee payment lock in 69% of its cash flow. Kinder Morgan pays out less than half of its stable cash flow in dividends. It retains the rest to invest in expansion projects and maintain its financial flexibility. The company currently has $8.8 billion of commercially secured expansion projects underway. That's a $5.8 billion increase from where its backlog was at the end of 2023. Its current slate of projects includes $8 billion of natural gas-related expansions. Those projects have in-service dates through the second quarter of 2030. Because of that, they'll supply the company with steadily growing cash flow through at least the end of that year. Kinder Morgan plans to continue adding fuel to its growth engine. It recently closed the $640 million acquisition of a natural gas gathering and processing system in the Williston Basin area of North Dakota, which will immediately boost its cash flow. The company has ample financial flexibility to complete additional accretive deals as opportunities arise in the future. Kinder Morgan is also pursuing a slew of additional growth projects. It's currently working on a substantial number of opportunities to supply additional gas to liquefied natural gas (LNG) export terminals that are under development. The company is also pursuing opportunities to supply a lot more gas to the power sector, which is expected to require substantial additional fuel in the future to support the anticipated surge in electricity demand from catalysts such as AI data centers. With visible growth coming down the pipeline and more opportunities on the horizon, Kinder Morgan should have ample fuel to continue increasing its high-yielding dividend through at least 2030. Growth visibility for the next five years Most companies don't have a lot of growth visibility. That's what makes ExxonMobil and Kinder Morgan stand out. They currently have visibility into their ability to grow their earnings and cash flow through 2030. Because of that, it looks highly likely that they will be able to increase their high-yielding dividends throughout that time frame. That's why you can confidently buy and hold these dividend stocks for the next five years, if not much longer. Should you invest $1,000 in ExxonMobil right now? Before you buy stock in ExxonMobil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ExxonMobil wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor 's total average return is792% — a market-crushing outperformance compared to173%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025
Yahoo
17 hours ago
- Business
- Yahoo
2 Top High-Yield Dividend Stocks You Can Confidently Buy and Hold Until at Least 2030
ExxonMobil's investment plan could add $20 billion in earnings and $30 billion in cash flow to its annual total in 2030. Kinder Morgan has pipeline projects underway that should enter service through 2030. These energy companies should have the fuel to continue growing their high-yielding dividends for at least the next five years. 10 stocks we like better than ExxonMobil › Investing in high-yielding dividend stocks has benefits and drawbacks. On the plus side, they pay lucrative dividends, making them an excellent way to generate passive income. However, a negative is that many companies have high-yielding dividends because they have nothing better to do with their free cash flow than funnel it back to shareholders. That's not true with ExxonMobil (NYSE: XOM) or Kinder Morgan (NYSE: KMI). They're also investing heavily in growth projects over the next five years. Because of that, you can confidently buy and hold these energy stocks to collect their high-yielding dividends that should steadily rise through at least 2030. ExxonMobil is a preeminent dividend stock. The oil giant has increased its dividend payment for 42 straight years. That leads the oil industry and is a record that only 4% of companies in the S&P 500 have achieved. "And we plan for that track record to continue for decades to come," stated CFO Kathy Mikells on Exxon's fourth-quarter earnings conference call. She noted that continuing to deliver dividend growth is "only possible by investing in the high-quality growth opportunities that drive leading returns and higher cash flows." The oil giant plans to invest $140 billion into major projects and its Permian Basin development program through 2030. It expects "this capital to generate returns of more than 30% over the life of the investments," stated CEO Darren Woods in the press release unveiling its plan to 2030. That level of investment and returns has the potential to deliver incremental growth of $20 billion in earnings and $30 billion in cash flow by 2030, assuming oil prices average around $60 a barrel (below the current price point). That's a 10% compound annual growth rate for its earnings and an 8% growth rate for cash flow from last year's baseline. Exxon estimates that this plan could produce a staggering $165 billion in surplus cash through 2030. The company can use the money to increase shareholder distributions by growing the dividend and continuing to buy back boatloads of its stock. It's aiming to repurchase $20 billion of its shares this year and another $20 billion in 2026, assuming reasonable market conditions. Given Exxon's track record and visible earnings growth through 2030, it seems safe to assume it can continue growing its dividend, which yields nearly 4%, throughout this period. Kinder Morgan extended its dividend growth streak to eight straight years in 2025. The pipeline company's payout, which yields over 4%, should continue growing for at least the next five years. Several factors drive that view. For starters, the company has highly contracted and predictable cash flows. Only 5% of its cash flow is exposed to commodity prices, and another 26% is subject to volume risk. Take-or-pay agreements or hedging contracts that guarantee payment lock in 69% of its cash flow. Kinder Morgan pays out less than half of its stable cash flow in dividends. It retains the rest to invest in expansion projects and maintain its financial flexibility. The company currently has $8.8 billion of commercially secured expansion projects underway. That's a $5.8 billion increase from where its backlog was at the end of 2023. Its current slate of projects includes $8 billion of natural gas-related expansions. Those projects have in-service dates through the second quarter of 2030. Because of that, they'll supply the company with steadily growing cash flow through at least the end of that year. Kinder Morgan plans to continue adding fuel to its growth engine. It recently closed the $640 million acquisition of a natural gas gathering and processing system in the Williston Basin area of North Dakota, which will immediately boost its cash flow. The company has ample financial flexibility to complete additional accretive deals as opportunities arise in the future. Kinder Morgan is also pursuing a slew of additional growth projects. It's currently working on a substantial number of opportunities to supply additional gas to liquefied natural gas (LNG) export terminals that are under development. The company is also pursuing opportunities to supply a lot more gas to the power sector, which is expected to require substantial additional fuel in the future to support the anticipated surge in electricity demand from catalysts such as AI data centers. With visible growth coming down the pipeline and more opportunities on the horizon, Kinder Morgan should have ample fuel to continue increasing its high-yielding dividend through at least 2030. Most companies don't have a lot of growth visibility. That's what makes ExxonMobil and Kinder Morgan stand out. They currently have visibility into their ability to grow their earnings and cash flow through 2030. Because of that, it looks highly likely that they will be able to increase their high-yielding dividends throughout that time frame. That's why you can confidently buy and hold these dividend stocks for the next five years, if not much longer. Before you buy stock in ExxonMobil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ExxonMobil wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Matt DiLallo has positions in Kinder Morgan. The Motley Fool has positions in and recommends Kinder Morgan. The Motley Fool has a disclosure policy. 2 Top High-Yield Dividend Stocks You Can Confidently Buy and Hold Until at Least 2030 was originally published by The Motley Fool Sign in to access your portfolio
Business Wire
22-04-2025
- Business
- Business Wire
ExxonMobil to Release First Quarter 2025 Financial Results
SPRING, Texas--(BUSINESS WIRE)--Exxon Mobil Corporation (NYSE: XOM) will release its first quarter 2025 financial results on Friday, May 2, 2025. The company will issue a press release via Business Wire that will be available at 5:30 a.m. CT at Darren Woods, Chairman and Chief Executive Officer; Kathy Mikells, Senior Vice President and Chief Financial Officer; and Jim Chapman, Vice President, Treasurer and Investor Relations, will review the results during a live conference call at 8:30 a.m. CT. The presentation will be accessible via webcast or by calling (888) 572-7032 (Toll-free) or (720) 543-0311 (Local). Please reference passcode 1723720 to join the call. An archive replay of the call and a copy of the presentation with accompanying supplemental financial data will be available at
Globe and Mail
15-04-2025
- Business
- Globe and Mail
Desiring Durable Passive Income During an Economic Downturn? These Elite Dividend Stocks Have Hiked Their Payouts In Each of the Last 4 Recessions.
Economic forecasters are raising the odds that we could experience a recession in the coming quarters. Goldman Sachs has hiked its recession probability a few times in recent weeks, bumping it from 20% all the way to 45%. Meanwhile, JPMorgan is even more bearish. Its recession model sees a nearly 80% chance the economy goes into a recession, up from 60% not long ago. Recessions tend to cause corporate profits to decline, which drives many companies to cut costs through layoffs and other initiatives. Some companies will even cut or suspend their dividend payments to shareholders to conserve cash. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » However, other companies are more recession-resistant due to the durability of their cash flows and the strength of their balance sheets. ExxonMobil (NYSE: XOM) and Coca-Cola (NYSE: KO) have proven their ability to weather recessions over the decades. They've both increased their dividends throughout at least the past four recessions. There's a good chance they can withstand the next one with similar ease. XOM Dividend data by YCharts. Gray bars are recessions. Decades of dividend growth with more to come ExxonMobil hiked its dividend payment by 4% earlier this year, extending its streak to 42 years of annual payment increases. "We're proud of the fact that we've increased our annual dividend per share for 42 years in a row, something only 4% of S&P 500 companies can claim," stated CFO Kathy Mikells during the oil giant's fourth-quarter earnings conference call. She continued, "And we plan for that track record to continue for decades to come, which is only possible by investing in the high-quality growth opportunities that drive leading returns and higher cash flows." The energy company has been investing heavily in transforming its business to dramatically improve its underlying earnings power while also expanding into lower-carbon energy. This strategy has boosted its earnings capacity by nearly $14 billion over the past five years on a constant price and margin basis. Exxon plans to invest over $140 billion into major capital projects and its Permian Basin development program through 2030, which, along with structural cost savings, should add another $20 billion to its annual earnings capacity. That incremental income will give Exxon even more fuel to grow its dividend, which is already on an incredibly safe foundation. Last year,Exxon produced $34.4 billion in free cash flow, easily covering its $16.7 billion dividend outlay. Meanwhile, it has a fortress balance sheet with an ultra-low 6% leverage ratio and a massive $23.2 billion cash balance. These factors put the oil giant's 3.8%-yielding dividend on a rock-solid foundation that should continue withstanding recessions. Cashing in on durable demand for its beverages Coca-Cola boosted its dividend payment by 5.2% earlier this year. That extended its dividend growth streak to 63 straight years. That raise kept Coca-Cola in the ultra-elite group of Dividend Kings, companies with 50 or more years of annual dividend increases. The company has benefited from the durable and growing demand for its beverage brands. Its portfolio features multiple billion-dollar brands that generate lots of free cash flow for the company. Coca-Cola expects to produce $9.5 billion in free cash flow this year, more than enough to cover its dividend outlay ($8.4 billion last year). The company also has a strong cash-rich balance sheet ($12.9 billion of cash, cash equivalents, and short-term investments) with leverage at the low end of its target range. Coca-Cola's long-term target is to organically grow its revenue by 4%-6% annually, which should drive mid-to-high single-digit earnings-per-share growth. Meanwhile, the company can enhance its growth rate by making accretive acquisitions. That puts it in a strong position to continue increasing its 2.9%-yielding dividend. Recession-resilient dividends Exxon and Coca-Cola have increased their dividends every year for several decades, which includes the last four in excellent positions to continue raising their payout during the next downturn, whether that happens later this year or further in the future. Because of that, they're great dividend stocks to buy for a durable passive income stream. Should you invest $1,000 in ExxonMobil right now? Before you buy stock in ExxonMobil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ExxonMobil wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $679,900!* Now, it's worth noting Stock Advisor 's total average return is796% — a market-crushing outperformance compared to155%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of April 14, 2025
Yahoo
15-04-2025
- Business
- Yahoo
Desiring Durable Passive Income During an Economic Downturn? These Elite Dividend Stocks Have Hiked Their Payouts In Each of the Last 4 Recessions.
Economic forecasters are raising the odds that we could experience a recession in the coming quarters. Goldman Sachs has hiked its recession probability a few times in recent weeks, bumping it from 20% all the way to 45%. Meanwhile, JPMorgan is even more bearish. Its recession model sees a nearly 80% chance the economy goes into a recession, up from 60% not long ago. Recessions tend to cause corporate profits to decline, which drives many companies to cut costs through layoffs and other initiatives. Some companies will even cut or suspend their dividend payments to shareholders to conserve cash. However, other companies are more recession-resistant due to the durability of their cash flows and the strength of their balance sheets. ExxonMobil (NYSE: XOM) and Coca-Cola (NYSE: KO) have proven their ability to weather recessions over the decades. They've both increased their dividends throughout at least the past four recessions. There's a good chance they can withstand the next one with similar ease. ExxonMobil hiked its dividend payment by 4% earlier this year, extending its streak to 42 years of annual payment increases. "We're proud of the fact that we've increased our annual dividend per share for 42 years in a row, something only 4% of S&P 500 companies can claim," stated CFO Kathy Mikells during the oil giant's fourth-quarter earnings conference call. She continued, "And we plan for that track record to continue for decades to come, which is only possible by investing in the high-quality growth opportunities that drive leading returns and higher cash flows." The energy company has been investing heavily in transforming its business to dramatically improve its underlying earnings power while also expanding into lower-carbon energy. This strategy has boosted its earnings capacity by nearly $14 billion over the past five years on a constant price and margin basis. Exxon plans to invest over $140 billion into major capital projects and its Permian Basin development program through 2030, which, along with structural cost savings, should add another $20 billion to its annual earnings capacity. That incremental income will give Exxon even more fuel to grow its dividend, which is already on an incredibly safe foundation. Last year, Exxon produced $34.4 billion in free cash flow, easily covering its $16.7 billion dividend outlay. Meanwhile, it has a fortress balance sheet with an ultra-low 6% leverage ratio and a massive $23.2 billion cash balance. These factors put the oil giant's 3.8%-yielding dividend on a rock-solid foundation that should continue withstanding recessions. Coca-Cola boosted its dividend payment by 5.2% earlier this year. That extended its dividend growth streak to 63 straight years. That raise kept Coca-Cola in the ultra-elite group of Dividend Kings, companies with 50 or more years of annual dividend increases. The company has benefited from the durable and growing demand for its beverage brands. Its portfolio features multiple billion-dollar brands that generate lots of free cash flow for the company. Coca-Cola expects to produce $9.5 billion in free cash flow this year, more than enough to cover its dividend outlay ($8.4 billion last year). The company also has a strong cash-rich balance sheet ($12.9 billion of cash, cash equivalents, and short-term investments) with leverage at the low end of its target range. Coca-Cola's long-term target is to organically grow its revenue by 4%-6% annually, which should drive mid-to-high single-digit earnings-per-share growth. Meanwhile, the company can enhance its growth rate by making accretive acquisitions. That puts it in a strong position to continue increasing its 2.9%-yielding dividend. Exxon and Coca-Cola have increased their dividends every year for several decades, which includes the last four recessions. They're in excellent positions to continue raising their payout during the next downturn, whether that happens later this year or further in the future. Because of that, they're great dividend stocks to buy for a durable passive income stream. Before you buy stock in ExxonMobil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ExxonMobil wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $679,900!* Now, it's worth noting Stock Advisor's total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 14, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Matt DiLallo has positions in Coca-Cola and JPMorgan Chase. The Motley Fool has positions in and recommends Goldman Sachs Group and JPMorgan Chase. The Motley Fool has a disclosure policy. Desiring Durable Passive Income During an Economic Downturn? These Elite Dividend Stocks Have Hiked Their Payouts In Each of the Last 4 Recessions. was originally published by The Motley Fool
