3 Top Stocks With High Dividend Yields

One of the best ways to invest for the long term is to focus on reliable stocks with high dividend yields. Combined with a dividend reinvestment plan, these kinds of investments can grow exponentially as you accumulate more shares of a given stock without having to shell out your own cash. Dividend stocks, with the important exception of yield traps, also have a proven track record of returning cash to investors and delivering profits, giving investors an extra degree of security.

If you’re looking for great dividend stocks, keep reading to see why these Foolish contributors recommend…

ExxonMobil (NYSE:XOM)GlaxoSmithKline (NYSE:GSK), and Target (NYSE:TGT).

Bet against this big energy stock at your peril

Todd Campbell (ExxonMobil): If you don’t own energy Goliath ExxonMobil yet, now could be the perfect time to add it to your holdings. The company’s got some big production coming online over the next few years, and a recent downturn in oil prices has caused shares to swoon and its dividend yield to swell.

A diversified energy company, ExxonMobil explores, produces, refines, and markets oil and gas products. Its vast resources make it one of the world’s biggest companies, and its production could begin climbing soon because new production offshore Guyana is expected to come online beginning next year.

Its massive Stabroek field offshore Guyana holds billions of oil equivalent barrels of resources. In fact, ExxonMobil currently anticipates that the play could produce over 750,000 barrels per day by 2025, beginning with 120,000 as early as 2020.

ExxonMobil’s also a major player in arguably the most attractive shale formation in the U.S.: the Permian basin. Management thinks it can be producing 1 million barrels of oil equivalent per day in the Permian by 2024.

Certainly, renewables will produce a larger proportion of future energy, but oil and gas will continue to remain major sources of energy for decades. Given that the company produced $20 billion in free cash flow after investments last year and it paid out $14 billion in dividends despite arguably unfavorable market conditions, I think picking it up now when its yield is an attractive 4.6% could be smart.

The cure for your income ills 

Sean Williams (GlaxoSmithKline): If you’re looking for a top-tier business with a high-yield dividend that you can preferably set and forget in your portfolio, look no further than U.K.-based pharmaceutical and healthcare products provider GlaxoSmithKline.

GlaxoSmithKline has three operating segments, and each brings something to the table that the other doesn’t.

The first, Consumer Healthcare, features…

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