Editor’s Note: From now until 2030, 10,000 baby boomers will approach retirement age each day, so we feel it’s important to share this message.

CNBC says “the dream of the ‘golden years’ is quickly turning into a fairy tale for a growing number of people” as wages compete with inflation.

But a solution might be in one of the most unlikely places: oil.

In today’s guest editorial, Oxford Club Chief Income Strategist Marc Lichtenfeld is showing traders the best energy stocks for dividends. Energy stocks often have high dividend yields because they generate a lot of cash flow.

And in case you want to learn more about how these strategies could help grow your nest egg, Marc is also letting readers in on a strange investment (open to everyone) that could hold the key to saving your retirement. It’s NOT a stock, bond or private company… and you can get in for as little as $25.

Get the details on this “strange” income play here.

– Ryan Fitzwater, Associate Publisher

My readers know me as the dividend guy. I literally wrote the book on dividends.

The key to successfully investing in dividends is to buy stocks that raise their dividends every year.

That way, you are keeping pace with or beating inflation and maintaining or increasing your buying power every year.

Think about it this way. If a product costs $100 this year and inflation is 5%, that product will cost $105 next year. If you receive $100 in dividends this year and your dividend increases by 8% next year, you will receive $108. So the increase in dividends will allow you to keep up with (and even beat) inflation and afford the new $105 price tag.

So it’s important to find stocks that increase their dividends annually.

The energy sector is a great place to look for them.

Oil and gas stocks tend to have solid dividend yields because they generate a lot of cash flow. A well-managed energy company grows its cash flow – or at least manages it well enough to increase the payout to shareholders each year.

Here are a few energy stocks that investors who want to grow their income every year can take a look at. Each of these companies’ free cash flow is at a 10-year high.

• Chevron (NYSE: CVX) is an oil giant that I added to the Instant Income Portfolio in my Oxford Income Letter newsletter two years ago. Since then, it is up about 104%. The company’s nearly $38 billion in free cash flow makes its $11 billion in dividends very affordable.

  Chevron has an impressive dividend-raising history – with 33 straight years of increases beginning in 1990. The dividend has grown at a compound annual growth rate of nearly 7%. The $1.51 per share quarterly dividend equals a 3.7% yield.

• One Gas (NYSE: OGS) is a gas utility that serves more than 2 million people in Kansas, Oklahoma and Texas. In 2022, it generated nearly $1 billion in free cash flow while paying out just $133 million in dividends, so it has plenty of room to raise the dividend in 2023.

  Considering it has lifted the dividend for nine straight years, it is very likely to continue to do so.

  One Gas as raised its dividend by a compound annual growth rate of 9.8% since 2014 – more than enough to beat inflation. The current yield is 3.3%.

• Phillips 66 (NYSE: PSX) refines and transports oil. The $8.6 billion in free cash flow in 2022 easily covered the $1.8 billion the company paid to shareholders in dividends.

  Phillips 66 has increased its dividend every year for the past 12 years. Over the past 10 years, the company has boosted the dividend an average of 10.4% per year. The stock yields 4.2%.

Owning dividend growth stocks is a conservative and time-tested strategy for growing your income and your wealth. And the energy sector is a prime spot to search for dividend growth stocks.

YOUR ACTION PLAN

If you’re interested in an energy play that is 100% outside the stock market, then you need to check out my presentation on the #1 oil and natural gas income play for 2023.

One man turned a single $1,000 investment in this asset into $100,000 a year for 50 years… That’s like earning a 10,000% dividend!

Get all the details on this income play here.

Good investing,

Marc

FUN FACT FRIDAY

No March Madness for Inflation. The latest consumer price index (CPI) report shows year-over-year inflation cooled last month. As you’ll see in the chart, the current U.S. inflation rate is at 4.98%, compared with 6.04% last month and down from the high of 9.06% in June 2022. This is a sign that the Federal Reserve’s recent interest rate hikes are starting to have a more noticeable effect on inflation. It also indicates the Fed could be nearing the end of its tightening cycle, meaning interest rates could start falling as well. Right now, our Head Fundamental Tactician, Karim Rahemtulla, is telling readers about a new “Super Income” opportunity that is a result of this development. He is pounding the table that the time to act is RIGHT NOW – before May 3!

Click here to learn how you can position yourself for 68 payouts throughout the year.