For decades, the safest, most reliable source of income for investors has been found in a group referred to as “widow-and-orphan” stocks.
The name itself implies that the stock carries such little risk that it can be a safe haven for anyone with a little cash to invest over a long period of time.
The telltale feature of these stocks comes in the form of high-paying dividends.
On the surface, this sounds like a win-win situation.
Unfortunately, that may not be the case for one particular stock in this bunch that could be in for a rude awakening over the next few years…
Now, I have no doubt whatsoever that you’ve heard of this company before, because the $383 billion market cap it carries is one of the most widely-recognized names on the planet.
I’m talking about Exxon Mobil Corporation.
It’s one of my favorite punching bags for a myriad of reasons — one of which we’ll talk about today.
Big Oil Goes Fishing
ExxonMobil has long been considered a premiere widow-and-orphan stock as well as an absolute behemoth in the global energy industry.
But after watching the largest publicly traded oil company over the last few years, one can’t help wondering if its days are numbered…
The most obvious concern is the steady production decline plaguing this energy giant.
During the last ten years, the company’s liquids production has declined by about 13% to 2.1 million barrels of oil equivalent per day. Over the same period of time, Exxon’s liquids production in the United States alone has dipped by 41%.
I’ve talked before about why we should change this company’s moniker to the world’s largest publicly traded natural gas company…
Fact is they’ve gone all in on another energy source — natural gas — and we know how that bet has paid off since 2008.
The $41 billion deal for XTO Energy a few years back helped them tack on an additional 2.8 billion barrels of oil equivalent to the company’s proved reserves.
If it weren’t for Exxon’s natural gas operations, the company’s production decline would have been steeper.
There’s a better way to find a steady stream of dividends for which all income investors are desperate.
At least, there was until I mentioned this high-yield hunt to a colleague…
The Hidden Yield
“Why settle for a lower yield and a lower return when it comes to your investment strategy?”
That’s how one of my colleagues, Jimmy Mengel, put it this week when he was showing me his approach to finding the hidden value in high-yielding income stocks.
And let’s face it: Finding a yield that can beat ExxonMobil’s unimpressive 2.9% isn’t difficult.
But uncovering one that offers you long-term value and potentially explosive growth is a rare thing in today’s market.
I believe Jimmy has found both with his latest play.
After giving me the heads-up on this income stock, I immediately pitted it against ExxonMobil, my punching bag…
Not only is it paying out around 8%, but Jimmy’s readers are also making a fortune on its performance. See for yourself how it stacks up against Big Oil:
Exxon’s flat performance over the past six months shouldn’t sit well with investors.
And there’s another piece to this puzzle that widow-and-orphan stock investors might consider…
You see, one of the best parts to this income investment is that it doesn’t produce a single barrel of crude oil, nor does it spend billions of dollars drilling for natural gas.
In fact, Jimmy’s secret is buried in a sector that is completely immune to the wild swings we see in today’s energy prices.
He’s on the verge of releasing an investment report dedicated to showing you precisely how to outperform virtually every blue chip stock on the market today…
You’ll hear every last juicy detail about this opportunity on Thursday.
Until next time,
Keith Kohl
Check us out on YouTube!A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.
Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.
