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

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