Energy Stocks Are Secretly Better Than Treasuries. Here’s Why Bob Brackett Is Loading Up on Exxon and Chevron.

On a caller occurrence of The Real Eisman Playbook, Bernstein Research elder vigor expert Bob Brackett made a assertion that should alteration however income investors look astatine the lipid majors. "Don't comparison the yields you get from a commodity institution to authorities yields. Compare them to TIPS. These are ostentation protected," helium told big Steve Eisman. That azygous reframing is the full bull lawsuit for owning Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), and ConocoPhillips (NYSE:COP) successful a portfolio's income sleeve.

A 10-year Treasury contiguous pays 4.57% successful nominal terms. The 10-year TIPS existent output is 2.16%. That TIPS fig is the honorable benchmark for immoderate plus whose currency flows set to inflation. An Exxon oregon Chevron dividend is, by definition, indexed to a tube of oil.

The "My 3% Dividend From Exxon" Thesis

Brackett's clearest articulation: "My 3% dividend from Exxon, if the dollar devalues, the tube of lipid gets much invaluable and they'll prolong that." A fixed Treasury coupon cannot bash that. The enslaved pays the aforesaid dollars whether the dollar buys a loaf of breadstuff oregon fractional a loaf adjacent year.

The numbers backmost Exxon's durability. The institution posted a $1.03 per stock Q2 2026 dividend payable June 10, 2026, sitting connected a 43-year dividend maturation streak and a planned $20 cardinal of stock repurchases successful 2026. Underlying Q1 2026 net roseate to $8.77 cardinal from $7.58 cardinal from a twelvemonth earlier, per the company's Q1 2026 8-K filing. CEO Darren Woods called Exxon "a fundamentally stronger institution than it was conscionable a fewer years ago, built to execute done disruption and crossed marketplace cycles."

The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and ConocoPhillips wasn't 1 of them. Get them present FREE.

Exxon shares are up 30% twelvemonth to day and 55% implicit 1 year, helped by WTI crude trading astatine $112.25 per tube arsenic of May 18, 2026, adjacent a 12-month high.

The COVID Stress Test

Brackett's grounds that these dividends are existent runs done 2020. During COVID, request collapsed by astir 20 cardinal barrels per day. The US majors paid done it. Exxon, Chevron, and ConocoPhillips maintained their dividends done the COVID request shock. European peers Shell, BP, and Total chopped theirs during the aforesaid period.