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 raises its dividend

CENOVUS ENERGY, $16.58, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $32.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.8%; www.cenovus.com) continues to sell less-important assets to pay down the debt it took on as part of the Husky acquisition.
On… Read More

Imperial ups its spending

IMPERIAL OIL LTD., $46.58, is a buy. The company (Toronto symbol IMO; Shares o/s: 695.6 million; Market cap: $32.8 billion; TSINetwork Rating: Average; Dividend yield: 2.3%; 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

Devon Energy hikes its dividend

DEVON ENERGY, $42.29, is a buy. The company (New York symbol DVN; TSINetwork Rating: Extra Risk) (www.dvn.com; Shares outstanding: 677.0 million; Market cap: $29.4 billion; Dividend yield: 1.0%) now pays out as much as 50% of its excess free cash flow in dividends. That’s in addition to the… Read More

Take advantage of rising crude prices

Oil stocks continue to rebound from their 2020 lows as the re-opening of the global economy pushes oil and gas prices to multi-year highs. We feel those prices will remain elevated, as producers focus on improving their efficiency instead of spending more on exploration given… Read More

Cenovus shares are cheap

CENOVUS ENERGY, $15.03, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $30.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.5%.; www.cenovus.com) continues to sell less-important properties to pay down debt.
The cash from those sales will help cut Cenovus’s net debt… Read More

Imperial rides the energy rebound

Oil prices have more than doubled over the last year to today’s price of roughly $83 U.S. a barrel. Natural gas prices are also up. Increased industrial activity is driving those gains as the world recovers from the pandemic. Still, energy prices will likely remain… Read More

Let our updates keep you on track

CENOVUS ENERGY, $12.85, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $25.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.5%.; www.cenovus.com) completed its acquisition of rival oil producer Husky Energy in January 2021.
The combined firm is… Read More

Savvy mergers cut your energy-stock risk

Oil and gas prices have moved up lately. But the future direction of energy prices depends on a lot of things, particularly economic growth rates around the world in the wake of COVID-19. Meanwhile, though, well-established companies in the industry have taken advantage of the… Read More

Ovintiv hikes your income

OVINTIV INC., $34.53, is a buy. The energy producer (Toronto symbol OVV; Shares o/s: 261.1 million; Market cap: $9.0 billion; TSINetwork Rating: Average; Dividend yield: 2.0%) operates three core properties: Montney (B.C.), Anadarko (Oklahoma) and Permian (Texas). In addition to natural gas, these fields produce… Read More

Two buys on the right track for growth

Long-time readers know that we keep you informed of important news about the stocks we cover. That means highlighting developments or strategies that promise to brighten your prospects. Here are two buys that stand out this month:
THERMO FISHER SCIENTIFIC INC. $544.66, is a buy. The… Read More

Suncor is poised to reward investors

Even though oil demand and prices continue to rebound from last year’s COVID-19-induced lows, Suncor’s shares have suffered. That’s partly due to problems that will delay the ramp-up of its Fort Hills oil sands project in northern Alberta. However, cost savings from Suncor’s takeover of… Read More

Cenovus continues to pay down debt

CENOVUS ENERGY INC. $10 is a buy. The company (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.0 billion; Market cap: $20.0 billion; Price-to-sales ratio: 0.8; Dividend yield 0.7%; TSINetwork Rating: Extra Risk; www.cenovus.com) completed its acquisition of rival oil producer Husky Energy… Read More

Imperial targets ESG

IMPERIAL OIL LTD., $33.21, is a buy. The company (Toronto symbol IMO; Shares o/s: 711.7 million; Market cap: $24.9 billion; TSINetwork Rating: Average; Dividend yield: 3.0%; www.imperialoil.ca) is teaming up with four other oil sands operators in Alberta (Suncor, Cenovus, Canadian Natural Resources and MEG… Read More