The energy sector continues to perform well in the markets, currently ranked the third best performer year to date. The stocks in the space are offering some of the best dividend rates according to TJM Institutional Services, Jim Iuorio, in an interview on CNBC News. Exxon Mobil Corporation (NYSE:XOM) and BP plc (ADR) (NYSE:BP) are some of the stocks that have been able to maintain the rally in the energy sector.

Warren Buffet is one of the investors that is reported to own huge investments in the arena despite incurring losses in ConocoPhillips (NYSE:COP) in the past. Exxon Mobil Corporation (NYSE:XOM) and BP plc (ADR) (NYSE:BP) are the darlings of Wall Street investors at the back of offering impressive dividends in the industry. “Some of this companies like XOM and BP they pay a very nice dividend  when you look around this world there is not many yields you can get that even have any appearance of being safe yields, ” said Mr. Iuorio.

Exxon Mobil Corporation (NYSE:XOM) and BP plc (ADR) (NYSE:BP) remain top picks in the energy sector for Iuorio as the sector continues to pick itself from the infancy stage. Domestic production in the U.S has drastically improved something that is making the likes of Exxon Mobil Corporation (NYSE:XOM)’s stock highly attractive considering the stability of the U.S. markets. Exxon Mobil investments in the refinery sector already speaks for itself standing at more than $2 billion as the company continues to make further investments in Europe.

Despite low margins and wide losses in Europe, Exxon is investing for the long-term in Europe as U.S domestic production continues to show prospects of meeting increased demand prospects. Jeff Kilburg, of KKM Financial, on the other hand, remained bullish on SPDR S&P Oil & Gas Explore & Prod. (ETF)(NYSEARCA:XOP), which has doubled its broader area market and is 15% up year to date. Baker Hughes Incorporated (NYSE:BHI) is the other stock that Mr. Kilburg is paying a closer watch at, advising investors be patient on their prices coming down.

“Wait on before you jump in, wait for these stocks to come down because when you see a broader market itself, qualities goes to one and these energy  stocks will be cheaper,” said Mr. Kilburg.

Warren Buffet despite making losses in the past is back in  the energy space, something that Mr. Iuorio believes highlights the great potential that the industry has going forward.

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