2 Dividend Stocks to Double Up On Right Now

As investors, we often find ourselves torn between the allure of high-growth tech stocks and the stability of income-generating investments. While it's tempting to chase the next big thing in AI or biotech, it's crucial to remember the value of dividend stocks in a well-rounded portfolio. In today's market, high interest rates have made dividend stocks more appealing, as they offer yields higher than those of CDs. Here, we'll explore two dividend stocks that stand out as compelling buys right now: ExxonMobil (XOM) and Kenvue (KVUE).


ExxonMobil (XOM) is a global leader in the energy sector, with a strong track record of dividend growth. The company currently offers a dividend yield of 3.2%, supported by its robust cash flow generation. Despite the ongoing transition to renewable energy, fossil fuels remain a critical part of the global energy mix, ensuring ExxonMobil's relevance for the foreseeable future. With a forward P/E ratio of 14, the stock is trading at a reasonable valuation, and analysts predict an 8% upside over the next 12 months. ExxonMobil's strong balance sheet, with over $26 billion in cash, ensures the sustainability of its dividend and provides a solid foundation for future growth.


Kenvue (KVUE), spun off from Johnson & Johnson in 2023, is a consumer health company with a portfolio of leading brands, including Listerine, Tylenol, and Motrin. Despite recent stagnant sales, Kenvue's brand portfolio and history of innovation make it an attractive long-term play. The company offers a dividend yield of 3.7% at its current share price, with a payout ratio of 6.5%. While Kenvue's short-term performance may be affected by integration challenges, its long-term prospects remain promising, with a potential for dividend growth and capital appreciation.


In conclusion, dividend stocks like ExxonMobil and Kenvue offer investors a compelling combination of income and growth potential. While the allure of high-growth tech stocks may be tempting, the stability and income-generating capabilities of dividend stocks make them an essential component of a well-rounded portfolio. As investors, we should strive to maintain a balanced approach, capitalizing on undervaluations created by market perceptions and focusing on sectors that generate stable profits and cash flows. By doing so, we can secure steady returns and achieve our long-term financial goals.