3 High-Yield Dividend Stocks to Buy in December for Generating Reliable

With just one month left in the year, now is the perfect time for investors to conduct a portfolio review and update their watch lists for top stocks to buy now. But with the broader stock market indexes around all-time highs, it has become increasingly harder to scoop up shares of quality companies in the bargain bin.

When stock prices outpace dividend growth rates, it pushes dividend yields down. In fact, the S&P 500 now yields just 1.2%, which is likely too low of a yield for investors looking to boost their passive income streams or supplement income in retirement.

Fortunately, there are still excellent dividend stocks if you know where to look. Here’s why ExxonMobil (XOM -0.09%), Vitesse Energy (VTS -0.39%), and Clorox (CLX -0.38%) stand out as top buys now.

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ExxonMobil is a solid find in the oil patch for procuring steady passive income

Scott Levine (ExxonMobil): Savvy income investors know that while high-yield dividends are alluring, they require close scrutiny since juicy payouts can dry up if companies are on shaky financial footing. This, however, is hardly the case with oil supermajor ExxonMobil. Over the past 42 consecutive years, ExxonMobil has hiked its dividend higher, illustrating a steadfast commitment to rewarding shareholders. For those seeking a reliable dividend stock that offers an enticing payout, ExxonMobil stock — along with its 3.3% forward-yielding dividend — is a solid opportunity.

Operating throughout the energy value chain, ExxonMobil is an energy powerhouse. The company recently reinforced its dominant industry position, moreover, with its acquisition of Pioneer Natural Resources, a transaction that more than doubled ExxonMobil’s acreage in the Permian and is expected to result in annual pre-tax synergies of about $2 billion per year over the next decade. This complements the company’s success in expanding profitability in its upstream business over the past five years. Whereas ExxonMobil reported earnings of $5 per barrel of oil equivalent in 2019, the company has generated earnings of $10 per barrel of oil equivalent in 2024 year to date, excluding the impact of Pioneer.

Those concerned that increases in renewable energy adoption may jeopardize the company’s financial well-being — and eventually the dividend — may be overestimating the impact of solar and wind power adoption as fossil fuels will likely play a critical role for many years to come. Moreover, ExxonMobil is expanding beyond fossil fuels. The company recently announced a plan to invest over $200 million to expand its recycling operations in Texas, which will result in an annual recycling capacity of 350 million pounds when operations start in 2026. In addition, ExxonMobil also announced the signing of a memorandum of agreement with LG Chem for up to 100,000 pounds of lithium…