AT&T (NYSE:T) is a telecom giant that has not been a huge winner in past years. However, most people would not mind getting the company’s juicy dividend, which currently brings in over 6.4%.
The company is called a Dividend Titan by analysts and has 36 consecutive years of dividend increases. AT&T has not announced a dividend hike for this year yet. And it is possible that its streak might end, although the firm could increase its dividend only a small amount to preserve its Dividend Titan status.
There are several negatives with AT&T. It owns a majority stake in DirecTV, which has experienced a large decline in customers. The company has a big debt load and its dividend program, while very attractive to investors, makes it harder for the company to compete in the capital-intensive industry.
However, AT&T’s investments in 5G technology might pay off nicely. And its HBO Max business is gaining steam. The company even gave a surprisingly good Q1 result. Even if the stock does not give strong growth, the chances are good the dividends will keep delivering payments.
ExxonMobil (NYSE:XOM) has a lot of similarity to AT&T. The stock has underperformed recently. And like AT&T, the company gives a healthy dividend with a yield of over 5.6%.
The company is also a Dividend Titan that might be on the verge of losing its status. Exxon has increased its dividend every year for 37 years. And last year, the company did not announce a dividend increase for 2021. Don’t dismiss the potential for the oil company to push through an increase near the end of this year to maintain its record of dividend increases.
ExxonMobil has one big problem: Nations and corporations are pushing to shift away from fossil fuels to cleaner sources of energy. However, the firm believes this change will take a long time, allowing it to keep profiting from oil and gas while this happens.
Still, ExxonMobil says there’s opportunity with cleaner energy. The company plans to put $100 billion toward capturing carbon emissions of refineries and plants in Texas and keep the emissions underground. This project might give ExxonMobil a new source of revenue growth.