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

CVE restores its dividend

CENOVUS ENERGY, $9.49, remains a buy for patient investors. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $19.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.7%.; www.cenovus.com) has now completed its acquisition of rival oil producer Husky Energy.
The combined firm is Canada’s third-largest producer of oil… Read More

Cost savings protect this dividend

CHEVRON CORP. $103 remains a buy. The company (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $195.7 billion; Price-to-sales ratio: 2.1; Dividend yield: 5.0%; TSINetwork Rating: Average; www.chevron.com) has completed its purchase of Noble Energy Inc. (New York symbol NBL) for… Read More

Computer Modelling set to rebound

COMPUTER MODELLING GROUP, $6.33, is still a buy. The company (Toronto symbol CMG; TSINetwork Rating: Extra Risk) (www.cmgl.ca; Shares o/s: 80.3 million; Market cap: $517.0 million; Dividend yield: 3.2%) reports that in the three months ended December 31, 2020, its revenue fell 16.8%, to $16.0 million from $19.3… Read More

Ovintiv attracts an activist

OVINTIV INC., $23.30, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 259.9 million; Market cap: $5.6 billion; TSINetwork Rating: Average; Dividend yield: 2.1%) has drawn the attention of activist investor Kimmeridge Energy Management Co.
Kimmeridge, which owns about 2.4% of Ovintiv, wants it to undertake several actions… Read More

Ovintiv gains from lower costs

OVINTIV INC. $22 is still a buy. The energy producer (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 259.8 million; Market cap: $5.7 billion; Price-to-sales ratio: 1.0; Dividend yield: 2.2%; TSINetwork Rating: Average; www.ovintiv.com) operates three core natural gas properties: Montney (B.C.), Anadarko (Oklahoma) and Permian… Read More

Our updates keep you on top of your stocks

TELUS, $25.55, is a buy. The company (Toronto symbol T; Shares outstanding: 1.3 billion; Market cap: $32.8 billion; TSINetwork Rating: Above Average; Dividend yield: 4.9%; www.telus.com) continues to roll out its new 5G (fifth-generation) wireless networks. They are up to 100 times faster than current 4G (or LTE)… Read More

These two are cheap in relation to cash flow

The global economic slowdown resulting from the coronavirus has hit some industries especially hard. That includes airlines, hotels, casinos and restaurants—and oil and gas. But unlike many of those companies, the best energy stocks for investors continue to report positive cash flow. Equally important, your… Read More

Ovintiv lowers its costs

OVINTIV INC., $17.17, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 259.9 million; Market cap: $4.3 billion; TSINetwork Rating: Average; Dividend yield: 2.8%) continues to improve its efficiency in response to the COVID-19 pandemic and falling oil prices. As a result, the company cut its… Read More

Use these updates to enhance your returns: Apache Corp., Yum China Holdings Inc. and HP Enterprise Co.

APACHE CORP. $14 is still a hold, but only for aggressive investors. The company (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 377.4 million; Market cap: $5.3 billion; Price-to-sales ratio: 1.1; Dividend yield: 0.7%; TSINetwork Rating: Average; www.apachecorp.com) produces oil and natural gas from properties… Read More

You need to keep some exposure to oil

We continue to recommend you maintain some exposure to oil stocks as part of the Resources portion of your overall portfolio. The four oil producers we analyze below still have substantial reserves; they’re also doing a good job of cutting their costs. That puts them… Read More

Cenovus buys Husky

CENOVUS ENERGY, $4.78, remains a buy for patient investors. The company (Toronto symbol CVE; Shares outstanding: 1.2 billion; Market cap: $5. billion; TSINetwork Rating: Average; No dividends paid; www.cenovus.com) has agreed to acquire rival oil producer Husky Energy Inc. (Toronto symbol HSE) for $3.8 billion… Read More

Devon makes a key acquisition

DEVON ENERGY, $8.63, is a buy. The company (New York symbol DVN; TSINetwork Rating: Extra Risk) (www.dvn.com; Shares o/s: 382.6 million; Market cap: $3.4 billion; Dividend yield: 5.1%) is a leading producer of oil and natural gas from wells in Wyoming, Texas, Oklahoma and New… Read More

Three key updates for Successful investors: Cenovus Energy Inc., Maple Leaf Foods Inc. and SNC-Lavalin Group Inc.

CENOVUS ENERGY INC. $5.15 remains a buy for patient investors. The company (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.2 billion; Market cap: $6.2 billion; Price-to-sales ratio: 0.4; Dividend suspended in March 2020; TSINetwork Rating: Extra Risk; www.cenovus.com) owns 100% of the Christina Lake and… Read More