Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.

Resource and commodity stocks in general should make up only a limited portion of your portfolio—say less than 20% for a conservative investor or as much as 30% for an aggressive investor. And as part of that segment, energy stocks could make up, say half of that total. The rest could be fertilizer stocks, mining stocks and so on.

Oil and gas stocks have been below-average performers lately, and many investors are tempted to get out of the industry altogether. However, the energy sector can play a crucial role in your portfolio as a hedge against inflation. The low inflation rates of the past couple of decades deserve some of the blame for the poor performance of the sector. However, energy stocks will likely rebound in years to come as the global economy recovers.

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
  3. Downplay or avoid stocks in the broker/media limelight.

Energy Stocks In Your Future

Learn everything you need to know in ‘Power and Profits of Energy Stocks’ for FREE from The Successful Investor.

Canadian Natural Resources Stock Guide: What to look for in Canadian Energy Stocks and more


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Energy Stocks Post Archives

Cash flow soared 182.2% at Imperial Oil Ltd.

Cash flow soared 182.2% at Imperial Oil Ltd.

Improved bitumen prices led to a 104.1% jump in revenue for this company during the most-recent quarter.

Exploration and upgrades coupled with increased production should boost its numbers even further.

Meanwhile the stock trades at just 10.0 times the company’s 2022 earnings forecast.

Energy Stocks In Your Future

Learn everything you need to know in 'Power and Profits of Energy Stocks' for FREE from The Successful Investor.

Canadian Natural Resources Stock Guide: What to look for in Canadian Energy Stocks and more

 I consent to receiving information from The Successful Investor via email. I understand I can unsubscribe from these updates at any time.

IMPERIAL OIL LTD. (Toronto symbol… Read More

Cenovus Energy Inc. is set to keep growing

Cenovus Energy Inc. is set to keep growing

Despite volatile crude prices, all investors should maintain some exposure to the oil and gas industry due to its huge importance to global economic growth.

Well-established producers like this one, whose recent purchase of rival Husky Energy adds to its already impressive reserves, is a strong… Read More

Enjoy 5.3% yield from Suncor Energy Inc.

Enjoy 5.3% yield from Suncor Energy Inc.

Oil stocks continue to rebound from their 2020 lows as oil and gas prices push to multi-year highs.

And thanks to new caps on greenhouse gas emissions, we feel those prices will remain elevated as producers focus on improving efficiency rather than spending on exploration… Read More

Cash flow is up 110.6% at Suncor Energy

Cash flow is up 110.6% at Suncor Energy

We continue to recommend conservative investors focus their oil holdings on integrated producers such as this one.

This firm’s upstream (or producing) business benefits from higher crude prices. Its downstream (refining) business converts crude into gasoline and other fuels and profits when oil prices fall… Read More

Shawcor is set for a rebound

Shawcor is set for a rebound

Bad weather and other issues led to a 12.4% revenue drop for this company during the most-recent quarter.

However, the company continues to win new contracts and prepare for a brighter future.

SHAWCOR LTD. (Toronto symbol SCL; www.shawcor.com) makes sealants and coatings that keep oil and gas… Read More

Enjoy 5.6% yield from TC Energy

Enjoy 5.6% yield from TC Energy

New U.S. president Joe Biden recently cancelled this company’s controversial Keystone XL pipeline project but the firm’s future remains bright.

The expected cash flow from other new operations should deliver 5% to 7% annual dividend increases.

Meanwhile the stock trades at just 15.1 times forecast earnings.

TC ENERGY… Read More

Get a 3.1% yield from ARC Resources

Get a 3.1% yield from ARC Resources

Oil and gas stocks have risen as the U.S. and other economies recover. But before prices climbed, this firm took advantage of the weakness to buy a major property at a low price.

Meanwhile the shares trade at just 4 times their forecast cash flow… Read More

Get a 3.0% yield from Suncor Energy Inc.

Get a 3.0% yield from Suncor Energy Inc.

Reduced production and oil prices led to a 31.1% revenue plunge for this company during the most-recent quarter.

Meanwhile, the company cut its operating costs by $1.3 billion (or 12%) and is planning asset sales to manage the oil market drawdown. Still, investors now enjoy a.. Read More