Don't you like it when something you're interested in buying goes on sale? Most people do, including me. Many investors get nervous, though, when a great stock declines. Sometimes such concerns are warranted, but they're often not.
I think income investors now have a fantastic opportunity to pick up several great stocks on sale. These three high-yield dividend stocks just became more attractive buys.
1. Brookfield Renewable
Brookfield Renewable (NYSE: BEP) (NYSE: BEPC) slipped a little last Friday after announcing its second-quarter results. The most important number from the renewable energy company's Q2 update was its funds from operations (FFO) of $339 million, or $0.51 per unit. This result reflected a 6% year-over-year increase. It also kept Brookfield on track to deliver FFO per unit growth of at least 10% for full-year 2024.
The stock is down year to date. However, Brookfield Renewable's future looks bright. The demand for renewable energy will almost certainly continue to grow regardless of which party captures the White House in the November elections.
Brookfield Renewable is ready to meet that demand. It currently owns hydroelectric, wind, solar, and distributed energy and storage facilities with an operational capacity of 32,500 megawatts. The company's development pipeline will increase this total by nearly sixfold.
Income investors should love Brookfield Renewable's forward distribution yield of around 5.9% (for the limited partnership units). The company also plans to increase its distribution by 5% to 9% each year.
2. ExxonMobil
ExxonMobil (NYSE: XOM) beat Wall Street earnings estimates with its Q2 results announced last Friday. However, the broader market sell-off prevented jubilation by investors over the giant oil company's quarterly update. ExxonMobil's share price even slipped slightly during early trading.
But I think ExxonMobil is now a more attractive stock to buy. The company's acquisition of Pioneer is making a huge impact already. ExxonMobil achieved record production from its Permian and Guyana assets in Q2. It even delivered the highest oil production in a quarter since the merger of Exxon and Mobil back in 1999.
ExxonMobil's bottom line should continue to improve thanks to cost-cutting efforts. Management projects the company will achieve structural cost savings of around $5 billion by 2027. Meanwhile, ExxonMobil is expanding into new low-carbon businesses, including carbon capture and storage.
The energy stock has been a favorite for income investors for decades. It still is -- and deservedly so. ExxonMobil's forward dividend yield stands at nearly 3.3%. The company has increased its dividend for an impressive 41 consecutive years.
3. Enbridge
Unlike ExxonMobil, Enbridge (NYSE: ENB) didn't beat the consensus earnings estimate with its Q2 results. However, the company, which operates pipelines and renewable power facilities in the U.S. and Canada, grew its distributable cash flow by 3% year over year to $2.9 billion.
Even better, Enbridge raised its full-year outlook. It now expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $17.7 billion to $18.3 billion, up from the previous guidance of $16.6 billion to $17.2 billion. This upward revision reflects the company's acquisitions of three U.S. gas utilities.
I like the dependability of Enbridge's business. Most of its cash flow (around 98%) comes from cost-of-service or contractual agreements. The company is also well insulated from commodity price volatility.
Arguably the best thing of all about Enbridge, though, is its dividend program. The company's forward dividend yield tops 7%. Enbridge has increased its dividend for 29 consecutive years.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $18,910!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $41,544!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $330,931!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of July 29, 2024
Keith Speights has positions in Brookfield Renewable, Brookfield Renewable Partners, Enbridge, and ExxonMobil. The Motley Fool has positions in and recommends Brookfield Renewable and Enbridge. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
These 3 High-Yield Dividend Stocks Just Became More Attractive Buys was originally published by The Motley Fool