Energy stocks offer better inflation-protected yields than 10-year TIPS, says analyst.

Bernstein analyst Bob Brackett argues that income investors should compare energy stock dividends to inflation-protected TIPS yields, not government bond yields. Exxon and Chevron offer dividend yields above the 10-year TIPS real yield, supported by strong oil prices and disciplined capital returns like buybacks and dividend hikes. During the 2020 demand crash, major U.S. energy companies maintained dividends, showing resilience. The sector's shift to capital discipline makes these stocks attractive for long-term income and inflation protection.