Factors like labour and supply constraints and higher interest rates could make it harder for investors to make money in the upcoming months. But Harris Financial Group’s Jamie Cox suggests investors put companies with a dividend of more than 3.0% on their watch list.
Why Cox likes Exxon Mobil
Cox named Exxon Mobil Corp (NYSE: XOM) in particular as one of his top picks. He expects the stock to continue to perform well on the back of higher oil prices. On CNBC’s “Power Lunch”, Cox said:
Companies like Exxon protect their dividend at all costs. Oil prices are going to remain high, especially if we have inflation. So, I believe that particular name is safe for a while.
The oil giant has a 6.0% dividend yield, with the stock up nearly 50% on a year-to-date basis. Energy is the best performing sector this year. It’s been red hot lately on strong monthly gains in oil and natural gas prices.
Other stocks that Cox recommends
Other names that Cox said were in line with his “more than 3.0% dividend” thesis include Novartis and Verizon. He added:
These are the companies that money is going to be flowing into as interest rates start to rise. I think investors need to be paying attention to the cash flow and growth of these companies.
Cox, however, warned that “debt ceiling” could be a deal-breaker, and a lack of agreement between Democrats and GOP could mean “all bets are off on all equities for a while”.
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