14.12.2019 17:51:00

Better Buy: ExxonMobil vs. Chevron Corporation

ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX) are two of the largest energy companies in the world, offering compelling yields of 5% and 4%, respectively. Dividend-focused investors might decide that Exxon's one percentage point yield advantage gives it the edge over Chevron, but don't jump so fast. There's a reason why Exxon yields more, and for some investors it might be enough to make Chevron the better buy. Here's a quick look at these two diversified oil and natural gas drillers to help you figure out which one is the better buy.There's no point beating around the bush: Exxon and Chevron are very similar companies. They both have highly diversified energy businesses, spanning from the upstream (oil drilling) to the downstream (chemicals and refining) spaces. They are both very large companies, with market caps of $290 billion and $220 billion, respectively. Even their dividend yields, while hardly the same, are both materially above the roughly 2% yield you would get from an S&P 500 Index fund today. Image source: Getty ImagesContinue reading
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