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.

The Future of Energy and Your Investments: read this FREE Special Report, Canadian Natural Resources Stock Guide: What to look for in Canadian Energy Stocks.

Read More

Energy Stocks Post Archives

Oil and gas software produces high-yielding dividend

Oil and gas software produces high-yielding dividend

This Canadian stock’s software helps major oil and gas customers make profitable engineering decisions more quickly.

Producers can map out their reservoirs thoroughly and extract the greatest possible volume of oil or gas. Over the past year the company has introduced new technologies, including artificial intelligence. The… Read More

Here are some ins and outs of Natural Gas Investing

Here are some ins and outs of Natural Gas Investing

Natural gas investing is unpredictable, but selecting stocks with strong management, a healthy balance sheet, plus rising gas production and reserves will help you lower that risk
Natural gas demand remains high. Pipeline exports to Mexico from the U.S. remain strong, as do exports of liquefied… Read More

Energy stock investments: 5 tips for making the best picks

Energy stock investments: 5 tips for making the best picks

If you want to make the best energy stock investments, you should to read this advice
Most investors who are looking at energy stock investments would likely think of oil and gas first. But energy stocks also cover green energy stocks, including power from renewable resources… Read More

Smart acquisitions power this stock’s high yield

Smart acquisitions power this stock’s high yield

Long-term security is the key to this Canadian stock’s successful acquisition strategy.

The company buys profitable utilities that can make immediate contributions to revenue, like the Missouri-based electric utility it bought a year ago. Plus, it sells clean energy through long-term guaranteed government contracts. Its shares… Read More