These are companies that return part of their profits to shareholders through regular payments. Companies with strong cash flow are often better able to maintain and increase their dividends over time. In fact, investors may want to consider these three.

ConocoPhillips 

Let’s start with ConocoPhillips (NYSE: COP), one of the largest oil and gas companies in the world. The company pays a quarterly dividend of 84 cents per share, or $3.36 per year. This gives the stock a dividend yield of about 3%.

Before ConocoPhillips reports its second-quarter results on August 6, Wells Fargo reiterated a buy rating on the stock and set a price target of $183. The firm believes ConocoPhillips is in a strong position because of its efficient operations and ability to handle changes in oil and gas prices. The analysts expect the company to meet its production goal of about 2.2 million barrels of oil equivalent per day.

Although lower natural gas prices could hurt parts of the business, the analyst believes stronger oil prices will help balance out those challenges. The firm also expects for ConocoPhillips to continue generating strong cash flow, which could support future dividend increases. 

Energy Transfer 

There’s also Energy Transfer (NYSE: ET), a company that owns and operates a large network of energy pipelines and infrastructure.

Energy Transfer operates about 140,000 miles of pipelines and pays investors a quarterly distribution of 33.75 cents per unit. That equals $1.35 per year and gives the stock a dividend yield of approximately 6.8%. Jefferies analysts reiterated a buy rating on Energy Transfer and gave the stock a price target of $23.

The analysts also believe Energy Transfer could benefit from continued demand for natural gas, natural gas liquids, and oil. 

Another key reason why analysts like Energy Transfer is its strong income potential. The company generates steady cash flow from its pipeline business, which is less dependent on daily energy price changes compared with oil producers.

Chevron 

There’s also Chevron (NYSE: CVX), which pays a quarterly dividend of $1.78 per share, or $7.12 annually. The stock currently offers a dividend yield of about 3.9%.

Jefferies analysts reiterated a buy rating on Chevron and set a price target of $216, noting that Chevron’s business is improving after facing several challenges earlier in the year. These included production issues in Kazakhstan, weather-related disruptions, and uncertainty caused by conflicts in the Middle East.

The analyst expects Chevron’s oil and gas production to recover and believes the company’s refining business will also perform well. Higher refining profits and strong operations could help Chevron generate significant cash flow.

The firm added that Chevron could produce about $18.2 billion in operating cash flow during the quarter. Strong cash generation gives the company flexibility to maintain its dividend and continue investing in future growth.

Why These 3 Energy Stocks Deserve a Look

Dividend stocks can be appealing to investors who want regular income and companies with strong fundamentals, especially during periods of high volatility and uncertainty.  

ConocoPhillips, Energy Transfer, and Chevron all offer attractive dividend payments and operate in the energy sector, which continues to play an important role in the global economy.

These three companies have built large-scale operations and continue to focus on returning capital to shareholders while investing in future growth. 

For income-focused investors, the appeal of these energy stocks goes beyond their current dividend yields. Their ability to generate consistent cash flow and maintain shareholder returns could make them worth considering as part of a diversified portfolio.

Standard Financial Analysis is Practically Worthless

Before I get into why I exclusively deal with Markov frameworks, it’s important to understand the severe limitations of standard financial analysis. When a security like COP stock loses 10% of equity value in the trailing month, one of the common, forward-looking assumptions is that the market selloff has “gone too far” or that “the market hasn’t fully priced in the countervailing good news.”

As the reader, your immediate question should be the obvious one: what percentage or portion of the positive catalyst has (or has not) been baked in? And an even more basic question: how does the author know that?

If you look at the financial publication space, you will find an endless library of articles claiming that such-and-such stock is undervalued. However, making such a pronouncement at face value assumes that there is an objective true value that Bob from Arkansas deciphered that no one else — including the biggest institutional players and hedge funds — has found.

I find that to be a remarkable proposition. As popularized by astronomer Carl Sagan, extraordinary claims require extraordinary evidence.

Plus, there’s another big problem with the traditional analysis content mill, which is that the supposed edge that the authors provide their readers is entirely downstream from the events they reference. In the case of COP stock, it’s easy to say that the energy giant is a buy because of the Marathon Oil integration and synergy capture, peer-leading shareholder returns and free cash flow visibility and enhanced capital efficiency and technology spudding.

I think you can spot my concern: this is all public data that has already been disseminated and digested from top to bottom. So, someone would have to explain to me how consuming information at the bottom somehow gives me alpha, which exclusively resides at the top.

Since I refuse to go down the path of deliberate cognitive dissonance, I’m going to present a more defensible proposition and that is this: given a specific bearish condition, the typical pathway of COP stock results in an above-average performance profile over the next five weeks.

Options Data for ConocoPhillips Stock? It’s a Waste of Time.

Usually, I would provide an analysis of unusual options activity or volatility skew for COP stock. I’m here to tell you that these datapoints are completely worthless and that you shouldn’t waste your time (or money) on chasing these data streams.

Let’s think about this matter logically. No one knows with absolute certainty where a stock will go next, whether that’s tomorrow or a decade from now. Given this limitation, how is it possible that the future can be extracted by the derivative of the unknown? If the unknown is unknown, why would a derivative product of the unknown make it known?

Let’s also think about unusual options activity via a critical lens. If there were 50,000 call options bought on COP stock, that doesn’t necessarily mean the market is net bullish. First, someone else is selling those calls, meaning that option transactions don’t just materialize in the ether. Second, by the time big call volumes hit the order books, the market maker has made critical adjustments to stay delta neutral.

Subsequently, those adjustments enhance the implied volatility of the underlying strike price. Invariably, then, if you traded COP stock based on its unusual options activity, you would be buying exposure at peak volatility premiums.

Options data streams are certainly sexy and you feel smart pointing at them and nodding your head. Functionally, though, you’re looking at the telemetry of an airplane that landed an hour ago.

Asking the Right Question

A legitimate analysis of a non-determinative system like the equities market begins with asking the right question. For me, the right question for COP stock is this: given a specific time period, what kind of performance may I expect if I were to just buy shares randomly?

For example, based on data going back to January 2019, a 10-week long position in COP stock would be expected to generate a forward distribution between $101.50 and $105.50 (assuming a starting price of $103.96, Tuesday’s close). Given the shape of the probability mass, you’d be looking at a neutral-to-slightly-bearish bias.

In other words, if you bought COP stock over a 10-week period, it’s basically 50/50 whether you would be profitable or not. So, if you were trading COP conditioned on a specific signal, that signal would have to generate a performance better than 50/50 to be worthwhile.

The next question is what’s the signal? I noticed that in the last 10 weeks, COP stock has printed only three up weeks, leading to an overall downward slope. Based on this 3-7-D sequence, the expected 10-week forward distribution would be between $101 and $110, which is noticeably better than the aforementioned random benchmark.

However, the improvement in expected performance isn’t linear. Under the 3-7-D signal, COP tends to rise over the next five weeks before mean-reverting downward. As such, if you accept the inductive framework that this time will be like the other times, a near-expiry bull call spread could be lucrative.

Identifying a Specific Idea

At the most aggressive, I would consider the 105/109 bull call spread expiring July 31. While the $109 strike is on the very edge of the expected distribution, the breakeven price of $107.41 offers a realistic safety buffer. Based on the expected median pathway following the 3-7-D signal, COP stock should be able to hit this target.

Now, the concept of the higher-order Markov chain (where the condition of one state yields a certain probability of transitioning to another state) is hardly foolproof. In fact, because there is no necessary reason why the 3-7-D signal must produce an above-average performance, traders can absolutely get blown up following observed patterns.

Keep in mind that this is a core criticism of all pattern recognition. Just because something happens a hundred times doesn’t necessarily mean that in the 101st time the same thing will also happen. It’s very possible that you can get an outlier, which would destroy the presupposition.

Still, without an inductive framework, there might not be a quantitative mechanism in analyzing public securities. Arguably, as imperfect as Markov chains may be, it’s the best solution we have.

This is particularly true if you’re thinking about retirement, nearing retirement, or you’re already there. One of the last things you want to worry about is whether your money will last. Financial security becomes less about chasing big gains and more about generating reliable, consistent income.

So why not put your money to work for you—starting today?

One of the most effective ways to do that is by investing in assets that provide both passive income and long-term growth. Exchange-traded funds (ETFs), especially those offered by Vanguard and other major issuers, can play a key role in achieving that balance. 

High-Yielding ETFs: JEPQ

The JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ) is a great example of this strategy. The ETF has delivered consistent income payouts. It paid a dividend of just over $0.50 per share on March 2, around $0.46 on February 2, and just over $0.57 on January 5. While these payments can fluctuate month to month, they highlight the fund’s focus on delivering regular income to investors.

With a yield of about 11.38%, this ETF stands out as one of the more aggressive income generators on the market today. It achieves this high yield through a combination of investing in U.S. large-cap growth stocks—many of which are tied to the technology-heavy Nasdaq—and selling call options to generate additional income. This options strategy helps boost yield, though it can also limit some upside during strong market rallies.

However, JEPQ isn’t the only strong dividend-paying ETF worth considering. Here are two more that offer a mix of stability, income, and long-term potential.

High-Yielding ETFs: VYM

Another popular choice is the Vanguard High Dividend Yield ETF (NYSEARCA: VYM), which takes a more conservative and diversified approach to income investing.

With an expense ratio of just 0.04%, VYM tracks the performance of the FTSE High Dividend Yield Index. The fund currently holds over 500 stocks, giving investors exposure to some of the most established dividend-paying companies in the U.S. market. Its top holdings include major blue-chip names like Broadcom (NASDAQ: AVGO), JPMorgan Chase (NYSE: JPM), Exxon Mobil (NYSE: XOM), Walmart (NYSE: WMT) and Johnson & Johnson (NYSE: JNJ).

The ETF currently offers a yield of around 2.29% and pays dividends on a quarterly basis. While its yield is lower than JEPQ’s, VYM makes up for it with stability and long-term reliability. Historically, funds like VYM have provided steady dividend growth over time, which can help investors keep pace with inflation.

Recent payouts include approximately $0.94 per share in September, about $0.84 earlier in the year, and roughly $0.86 in June. These consistent distributions make it a solid “core” holding for income-focused portfolios.

High-Yielding ETFs: VDE

Another strong option for dividend seekers is the Vanguard Energy Index Fund ETF (NYSEARCA: VDE), which focuses specifically on the energy sector.

With an expense ratio of 0.09% and a yield of about 2.43%, VDE offers targeted exposure to oil, gas, and energy infrastructure companies. The fund holds roughly 100+ stocks, including major players like Chevron (NYSE: CVX), ConocoPhillips (NYSE: COP), Williams Companies (NYSE: WMB), and EOG Resources (NYSE: EOG).

Like VYM, VDE pays dividends quarterly. It recently distributed just over $1.02 per share in December, following a payout of about $1.00 in September. Energy stocks are known for their cyclical nature, but they can also provide strong income during periods of high commodity prices and global demand.

One major tailwind for the energy sector right now is rising global demand—especially for electricity. The rapid expansion of technologies like artificial intelligence, data centers, and electrification is putting increasing pressure on energy infrastructure. According to the International Energy Agency, global electricity demand is expected to grow at an annual rate of about 4% through 2027. That trend could continue to support revenues—and dividends—for energy companies in the years ahead.

This Could Be a Time to Put Safety First

High-yield ETFs can be powerful tools for building a steady stream of passive income, particularly for retirees or those nearing retirement. Whether you’re looking for high monthly income like JEPQ, diversified dividend exposure like VYM, or sector-specific opportunities like VDE, there are options to match a variety of risk tolerances and income goals.

As always, it’s important to consider how these ETFs fit into your broader financial plan. While high yields can be attractive, factors like market volatility, interest rates, and economic conditions can all impact performance and payouts over time.

But let’s take a step back and ask why this is important.

After spending years building up your nest egg, you want to step into the retirement you deserve — whether that means relocating to a dream destination, traveling more, spending more time with family, or simply enjoying the comfort of your finances.

What you don’t want is constant stress about market swings, inflation quietly eroding your purchasing power, or the fear of outliving your savings.  You also don’t want to live on the scant 0.6% from your average savings account.

Collect 3.38% Every Quarter

One way to do that is by investing in a safe, high-yielding exchange traded fund (ETF), like the Schwab U.S. Dividend Equity ETF (NYSEARCA: SCHD). With an ultra-low expense ratio of 0.06%, the SCHD ETF tracks the total return of the Dow Jones U.S. Dividend 100 Index. The fund currently holds 101 dividend-paying stocks, including blue-chip names such as Bristol Myers Squibb (NYSE: BMY), Merck & Co. (NYSE: MRK), ConocoPhillips (NYSE: COP), Lockheed Martin Corp. (NYSE: LMT), Chevron (NYSE: CVX), Verizon Communications Inc. (NYSE: VZ), and Cisco Systems (NASDAQ: CSCO).

SCHD pays a quarterly dividend, making it a reliable source of regular income. It last paid out just over 27 cents per share on December 15. Before that, it distributed just over 26 cents per share on September 29 and just over 26 cents per share again on June 30. That kind of consistency is exactly what retirees need when planning monthly expenses.

The ETF is also up about 15% since the start of the year after a lackluster 2025. This is a reminder that dividend-paying ETFs can offer growth potential alongside income.

High Standards, Built-In Stability

What really sets SCHD apart from other dividend-paying ETFs is its strict eligibility criteria. To even be considered for inclusion, a company must have at least 10 consecutive years of dividend payouts, a market cap of no less than $500 million, and an average three-month daily trading volume of at least $2 million. In short, the ETF doesn’t accept any slouches. SCHD also favors companies carrying little to no debt, adding an extra layer of stability that matters when volatility picks up.

This disciplined, rules-based approach is one reason SCHD has earned a strong reputation among investors who prioritize quality over yield-chasing. Many dividend-paying ETFs simply sweep up the highest yields available without regard for financial health — SCHD takes the opposite approach, screening for durability first.

The SCHD ETF Will Rebalance in March

In just weeks, the SCHD ETF will also undergo its annual rebalancing. This time around, it’s again expected to rotate out of stocks with compressed yields and into stocks with higher yields, which should include stocks in the financial and healthcare sectors.

For investors keeping an eye on dividend-paying ETFs heading into the spring, this rebalancing could create a timely entry point. It offers a strong alternative. Owning a high-quality dividend ETF like SCHD can be a powerful step toward turning your hard-earned nest egg into lasting financial security.

A Smarter Alternative to Your Savings Account

The SCHD ETF has proven to be a reliable choice for those seeking income, stability, and long-term growth. And it provides all of that in a single, low-cost fund. For investors who want to replace the unreliable interest of a savings account with a consistent quarterly paycheck, without taking on excessive risk, SCHD offers a compelling alternative.

Owning a high-quality dividend-paying ETF like SCHD can be a powerful step toward turning your hard-earned nest egg into lasting financial security — and the kind of retirement you’ve actually been working toward.

With speculation of a potential conflict with Iran, oil prices are up another $1.31 to $66.50. And depending on whether we go to war and what could potentially happen in the Strait of Hormuz, investors may want to jump into potential oil war stocks.

We have to consider that Iran is one of the world’s leading suppliers, with its government making it clear that it will retaliate if the U.S. attacks. This could eventually lead to a full blockage of the Strait of Hormuz or restricted access.

• Iranian leaders have warned that any U.S. attack could spark a regional war.
• Iran could use allied militias and proxy groups to attack U.S. allies and interests throughout the Middle East.
• The Strait of Hormuz, a chokepoint for about 20 million barrels of oil per day of global supply, could be targeted, threatening global flow.

In the U.S., “Top national security officials have told Mr. Trump the U.S. military is ready for potential strikes on Iran as soon as Saturday, but the timeline for any action is likely to extend beyond this weekend, sources familiar with the discussions told CBS News, adding that President Trump had not yet made a final decision about whether to strike Iran.”

We should also consider that any conflict between the U.S. and Iran would probably be larger and longer than a few days, potentially a multi-week campaign rather than a quick strike, which would create significant upside potential for oil.

Not only are oil stocks, such as Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX), gushing higher on speculation of war, but so are related ETFs such as the Energy Select Sector SPDR ETF (NYSEARCA: XLE).

Why You Need to Be Cautions With Oil War Stocks

The last time the U.S. hit Iran was in late June 2025, when the U.S. carried out air and missile strikes on several of Iran’s nuclear facilities — including the Fordow, Natanz, and Isfahan sites — as part of the broader conflict involving Iran and Israel. 

Prior to the attack, oil traded at about $60, spiking to about $78 before plummeting back to earth following the nuclear facilities’ attack. 

We could see a similar situation play out this time, as well.

Unfortunately, it’s a wait-and-see at this point. Right now, simply on speculation of an attack on Iran, investors may want to consider a position in Exxon Mobil or Chevron. Or, to take an all-of-the-above approach, here are three ETFs to consider.

Oil War Stocks: SPDR Energy Select Sector ETF (XLE)

With an expense ratio of 0.09%, the Energy Select Sector SPDR Fund ETF (NYSEARCA: XLE) provides exposure to companies in the oil, gas, and consumable fuel, energy equipment, and services industries.

The ETF is heavily weighted toward large, established energy giants, which account for a significant portion of its total holdings and help provide more resilience during market downturns. Plus, not only does an ETF allow for diversification, but you can buy it for less than $47 a share, which, by the way, is cheaper than most of the ETFs 2 holdings.

Some of those holdings include Exxon Mobil, Chevron, ConocoPhillips (NYSE: COP), Williams Cos. (NYSE: WMB), and EOG Resources (NYSE: EOG).

Oil War Stocks: SPDR S&P Oil & Gas Exploration & Production ETF (XOP)

With an expense ratio of 0.35%, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA: XOP) ETF provides exposure to 51 oil and gas exploration and production segment of the S&P TMI, which comprises the following sub-industries: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & Marketing, as noted by State Street SPDR. 

Some of the fund’s top holdings include Callon Petroleum (NYSE: CPE), SM Energy Company (NYSE: SM), Devon Energy Corp. (NYSE: DVN), EOG Resources, and ConocoPhillips. 

XOP also has an extremely high correlation with the price of oil, making it a suitable choice for investors seeking direct leverage to upward movements in crude oil prices.

Oil War Stocks: iShares Global Energy ETF (IXC)

With an expense ratio of 0.40%, The iShares Global Energy ETF (NYSEARCA: IXC) seeks to track the investment results of an index composed of global equities in the energy sector. Some of its 50 holdings include Exxon Mobil, Chevron Corporation, BP PLC (NYSE: BP), Total SA, and EOG Resources.

It’s also one of the few options for investors seeking global exposure to the energy sector, including significant holdings in U.S., Canadian, and European companies like Exxon Mobil and Shell. Also, much like the other two ETFs above, the IXC also pays a dividend.