ConocoPhillips (COP), Exxon Mobil Corporation (XOM): A Dividend Increase and High Yield Make This Oil Major a Buy

Chevron Corporation (NYSE:CVX)’s immense proved reserves place the company in a great position going forward. Chevron Corporation (NYSE:CVX) added approximately 1.07 billion barrels of net oil-equivalent proved reserves in 2012, which equate to 112% of net oil-equivalent production for the year.

And it probably goes without saying that Exxon has a tremendous business itself. To that end, in 2012 ExxonMobil booked $453 billion in sales. The company’s diluted earnings per share rose 15% from the previous year, and Exxon’s fantastic financial position remained intact.

Exxon reduced its long-term debt by $1.4 billion last year and holds a debt-to-capital ratio of just 6%. That’s why Exxon is one of only four U.S.-based non-financial firms to hold a triple-A credit rating from Standard and Poor’s.

ConocoPhillips: a great long-term hold

This is not to say at all that Exxon and Chevron Corporation (NYSE:CVX) are bad companies in any sense. Quite the contrary: investors who buy today can count on decades of strong profits and steady dividends from all three. For investors in need of current income, for example, those in or nearing retirement, Conoco is a leader among U.S.-based oil majors with a yield approaching 4.5%.

For investors with a much longer time horizon, Exxon and/or Chevron should be in your portfolio. Both stocks have lower yields now, but decades of higher dividend growth will still provide amazing long-term results.

No matter your investing preferences, there’s an oil major for you. These three stocks can be the foundation of an impeccable long-term portfolio, and should be on your watch list today.

The article A Dividend Increase and High Yield Make This Oil Major a Buy originally appeared on Fool.com is written by Robert Ciura.

Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends Chevron. Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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