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.

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Energy Stocks Library Archives

Cenovus adds to oil sands

CENOVUS ENERGY, $26.18, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $51.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 1.6%; www.cenovus.com) has agreed to buy the 50% of the Sunrise oil sands property in northern Alberta that it doesn’t already… Read More

IMO meets buyback target

IMPERIAL OIL LTD., $63.54, is a buy. The company (Toronto symbol IMO; Shares outstanding: 636.7 million; Market cap: $40.5 billion; TSINetwork Rating: Average; Dividend yield: 2.1%; www.imperialoil.ca) has completed its plan to buy back $2.5 billion of its common shares through a Dutch auction process.
Under the plan, Imperial… Read More

Great way to buy oil

DEVON ENERGY, $68.46, is a buy. The company (New York symbol DVN; TSINetwork Rating: Extra Risk) (Shares o/s: 660.0 million; Market cap: $46.6 billion; Divd. yield: 5.3%) continues to use acquisitions to expand operations in its core areas. The company just announced the purchase of the Williston Basin… Read More

Ovintiv’s outlook is bright

OVINTIV INC., $73.62, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 258.1 million; Market cap: $18.3 billion; TSINetwork Rating: Average; Dividend yield: 1.4%) operates three core properties: Montney (B.C.), Anadarko (Oklahoma) and Permian (Texas). In addition to natural gas, these fields produce large amounts of… Read More

Suncor fends off activist

SUNCOR ENERGY INC. $46 is a buy. The company (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.44 billion; Market cap: $66.2 billion; Price-to-sales ratio: 1.7; Dividend yield: 4.1%; TSINetwork Rating: Average; www.suncor.com) is Canada’s largest integrated oil firm, with major projects in the Alberta oil… Read More

Cenovus triples its dividend

CENOVUS ENERGY, $25.70, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $49.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 1.6%; www.cenovus.com) completed its acquisition of rival oil producer Husky Energy in January 2021.
The combined firm is now Canada’s third-largest producer… Read More

Cheap way to profit in energy

BIRCHCLIFF ENERGY, $10.13, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (Shares o/s: 266.0 million; Market cap: $2.6 billion; Dividend yield: 0.4%) reports that its cash flow in the quarter ended December 31, 2021, jumped sharply, to $0.73 a share from $0.25 a year earlier. The… Read More

Cenovus aims to reward investors

CENOVUS ENERGY INC. $21 is a buy. The company (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.0 billion; Market cap: $42.0 billion; Price-to-sales ratio: 0.9; Dividend yield: 0.7%; TSINetwork Rating: Extra Risk; www.cenovus.com) plans to cut its annual greenhouse gas emissions 35% by the end… Read More

Top producers can handle greenhouse targets

Canada’s federal government recently announced new greenhouse gas (GHG) reduction targets. Those include cutting emissions from oil and gas producers by 42% before 2031. That new target is more aggressive than Suncor’s or Imperial Oil’s own plan. Even so, meeting it is unlikely to severely… Read More

Tap higher crude prices but with less risk

Oil prices continue to strengthen as COVID-19 travel and other restrictions ease. Despite new government regulations to limit carbon emissions, crude prices will remain elevated as producers like Chevron focus on improving their efficiency instead of increasing production. That should keep pushing up the share… Read More

Let Cenovus cut your oil risk

Despite volatile crude prices, we continue to advise all investors to maintain some exposure to the oil and gas industry. That advice reflects oil’s huge importance to global economic growth even as governments impose new regulations to cut carbon emissions.
We also recommend investors stick with… Read More

Key updates on your safety-conscious stocks

IMPERIAL OIL LTD., $54.44, is a buy. The company (Toronto symbol IMO; Shares o/s: 695.6 million; Market cap: $38.1 billion; TSINetwork Rating: Average; Dividend yield: 2.5%; www.imperialoil.ca) is Canada’s third-largest publicly traded oil company after Canadian Natural Resources (No. 1) and Suncor. U.S.-based ExxonMobil (New York symbol XOM)… Read More