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.
Invest mainly in well-established companies;
Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
Downplay or avoid stocks in the broker/media limelight.
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CENOVUS ENERGY INC. $24 is a buy. The country’s third-largest oil producer (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $45.6 billion; Price-to-sales ratio: 0.8; Dividend yield 2.3%; TSINetwork Rating: Average; www.cenovus.com) plans to spend between $4.5 billion and $5.0 billion on… Read More
CENOVUS ENERGY, $23.42, is a buy for long-term gains. The company (Toronto symbol CVE; Shares o/s: 1.9 billion; Market cap: $44.4 billion; TSINetwork Rating: Average; Yield: 2.4%; www.cenovus.com) expects to spend between $4.5 billion and $5.0 billion on exploration and upgrades in 2024. That’s up from its likely 2023… Read More
The shares of oil and gas stocks remain high as energy demand stays strong. We continue to recommend that most investors maintain some exposure to the oil and gas industry as part of a balanced portfolio. But, to cut risk, you should stick with producers that… Read More
ENERPLUS CORP., $23.98, (Toronto symbol ERF; Shares outstanding: 203.3 million; Market cap: $4.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 1.4%) produces oil and gas mostly from properties in the Bakken area of North Dakota, the DJ Basin in Colorado, and the Marcellus Shale in Pennsylvania.
The company’s shares… Read More
BIRCHCLIFF ENERGY, $4.82, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (Shares outstanding: 266.6 million; Market cap: $1.3 billion; Dividend yield: 8.3%) has cut your quarterly dividend by 50.0% due to lower natural gas prices. With the March 2024 payment, investors will receive $0.10 a share… Read More
These two oil producers continue to increase their production. That will let them take advantage of the expansion of the TransMountain pipeline, which pumps crude from Alberta to the B.C. coast. The new line will let them sell crude at higher prices than oil shipped… Read More
CENOVUS ENERGY, $21.78, is a buy for long-term gains. The company (Toronto symbol CVE; Shares o/s: 1.9 billion; Market cap: $41.8 billion; TSINetwork Rating: Average; Yield: 2.6%; www.cenovus.com) has formed a new joint venture with Athabasca Oil (Toronto symbol ATH) to manage their properties in the Kaybob Duvernay region… Read More
OVINTIV INC., $57.03, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 272.9 million; Market cap: $16.0 billion; TSINetwork Rating: Average; Dividend yield: 2.8%) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah).
In 2024, Ovintiv expects to spend between $2.1 billion and… Read More
We have singled out these two stocks and one ETF as your #1 buys for 2024. Each offers investors long-term growth prospects at a reasonable price. At the same time, all three companies successfully weathered the pandemic and are poised for solid gains as the… Read More
Demand for Major Drilling’s specialized services has now recovered. Meanwhile, Computer Modelling is benefiting from expanding oil and gas drilling in response to overall higher energy prices. We think there are still gains ahead for both stocks.
MAJOR DRILLING, $8.98, is a buy. This large contract driller… Read More
OVINTIV INC. $55 is a buy. The oil and gas producer (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 273.7 million; Market cap: $15.1 billion; Price-to-sales ratio: 1.0; Dividend yield: 2.9%; TSINetwork Rating: Average; www.ovintiv.com) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and… Read More
Here are two of our leading safety-conscious oil and gas recommendations. Both are in strong positions to profit from higher energy prices and to keep rewarding investors with higher dividends and share buybacks. Each is a buy.
IMPERIAL OIL LTD., $79.80, is a buy. The company (Toronto symbol… Read More
IMPERIAL OIL LTD. $75 is a buy. The oil producer (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 604.8 million; Market cap: $45.4 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.7%; TSINetwork Rating: Average; www.imperialoil.ca) is using its strong cash flow to reward investors with… Read More
CRESCENT POINT ENERGY, $9.58, is a buy for aggressive investors. The company (Toronto symbol CPG; Shares o/s: 536.1 million; Market cap: $5.1 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.2%) is now buying Hammerhead Energy (Toronto symbol HHRS) for $2.55 billion.
The deal will see Crescent Point acquire 105,000 acres… Read More
The shares of oil and gas stocks remain high as energy demand stays strong. We continue to recommend that most investors maintain some exposure to the oil and gas industry as part of a balanced portfolio. But, to cut risk, you should stick with producers that… Read More
PHILIPS ELECTRONICS N.V. ADRs $21 is a hold. The company (New York symbol PHG; Conservative Growth Portfolio, Manufacturing sector; ADRs o/s: 920.8 million; Market cap: $19.3 billion; Price-to-sales ratio: 1.0; Divd. yield: 4.5%; TSINetwork Rating: Average; www.philips.com) makes industrial health-care products, including X-ray scanners and ultrasound systems, along… Read More
SUNCOR ENERGY INC. $43 is a buy. The company (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares o/s: 1.3 billion; Market cap: $55.9 billion; Price-to-sales ratio: 1.1: Dividend yield: 4.8%; TSINetwork Rating: Average; www.suncor.com) recently announced a new strategy under which it will focus on its core… Read More
OPEC and Russia (together accounting for about 40% of the world’s oil production) recently agreed to extend their current production cuts until the end of 2023, and likely into 2024. That has helped lift oil prices from about $67 U.S. a barrel in June to… Read More
Demand for Major Drilling’s specialized services is now recovering. Meanwhile, Computer Modelling is benefiting from expanding oil and gas drilling in response to overall higher energy prices. We think there are still gains ahead for both stocks.
MAJOR DRILLING, $8.04, is a buy. This large contract driller… Read More
CENOVUS ENERGY INC. $28 is a buy. The company (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $53.2 billion; Price-to-sales ratio: 0.9; Dividend yield 2.0%; TSINetwork Rating: Average; www.cenovus.com) is now Canada’s third-largest producer of oil and natural gas after Canadian Natural… Read More