These 3 High-Yield Dividend Stocks Have Become More Attractive Buys

Don’t you just hate it when something you want to buy is on sale? Most people do, and so do I. Many investors get nervous when stocks go down. Sometimes those fears are justified, but often they aren’t.

I think income investors have a fantastic opportunity to buy some great stocks on sale right now. These three high-yielding dividend stocks have become more attractive buys.

1. Brookfield Renewables

Brookfield Renewables (BEP -0.54%) (BEPC 0.32%) fell slightly last Friday after it reported 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. That result represented a 6% year-over-year increase. It also kept Brookfield on track to achieve FFO per unit growth of at least 10% in full-year 2024.

The stock has fallen since the beginning of the year. But the future looks bright for Brookfield Renewable. Demand for renewable energy will almost certainly continue to grow regardless of which party wins the White House in November.

Brookfield Renewable is poised to meet that demand. It currently has 32,500 megawatts of operating hydro, wind, solar, and distributed generation and storage facilities. The company’s expansion plan will increase that total nearly six-fold.

Income investors should love Brookfield Renewable’s projected distribution yield of around 5.9% (for limited partnership units). The company also plans to grow its distribution by 5% to 9% annually.

2. ExxonMobil

ExxonMobil (XOM -0.06%) beat Wall Street profit estimates with its second-quarter earnings announcement last Friday. But a broader market sell-off kept investors from rejoicing in the oil giant’s quarterly update. ExxonMobil’s stock price even fell slightly in early trading.

But I think ExxonMobil is a more attractive stock to buy now. The company’s acquisition of Pioneer is already having a huge impact. ExxonMobil delivered record production from its Permian and Guyana assets in Q2. It even delivered its highest oil production in a quarter since the Exxon-Mobil merger in 1999.

ExxonMobil’s bottom line should continue to improve as cost-cutting efforts continue to improve. Management forecasts the company will achieve $5 billion in structural cost savings by 2027. Meanwhile, ExxonMobil is expanding into new low-emission businesses, including carbon capture and storage.

Energy stocks have been a favorite of income investors for decades. They still are, and rightly so. ExxonMobil’s forward dividend yield is almost 3.3%. The company has increased its dividend for an impressive 41 consecutive years.

3. Enbridge

Unlike ExxonMobil, Enbridge (ENB 0.96%) failed to beat consensus earnings estimates with its second-quarter results. However, the company, which operates pipelines and renewable energy sources in the U.S. and Canada, increased its distributable cash flow by 3% year over year to $2.9 billion.

In addition, Enbridge raised its full-year guidance. It now expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $17.7 billion to $18.3 billion, compared with its previous guidance of $16.6 billion to $17.2 billion. The upward revision reflects the company’s acquisitions of three U.S. gas companies.

I like Enbridge’s reliability. Most of its cash flow (about 98%) comes from service costs or contract agreements. The company is also well-insulated from commodity price volatility.

However, the best thing about Enbridge is its dividend program. The company’s forward dividend yield is over 7%. Enbridge has increased its dividend for 29 consecutive years.

Keith Speights holds positions in Brookfield Renewable, Brookfield Renewable Partners, Enbridge, and ExxonMobil. The Motley Fool holds positions in and recommends Brookfield Renewable and Enbridge. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.