oil prices
We recommend that all investors keep some exposure to oil, particularly as the world economy rebounds from COVID-19 shutdowns. Still, integrated producers, such as these two, remain the best way to cut your risk and protect your income.
SUNCOR ENERGY INC....
SUNCOR ENERGY INC....
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 the day-to-day operations of the Syncrude project should give it more cash for share buybacks and dividends.
SUNCOR ENERGY INC....
SUNCOR ENERGY INC....
OPEC recently announced that it would gradually increase oil production over the next few months. Despite the extra supply, oil prices rose on the news because industrial activity around the world continues to recover from the pandemic. Stable prices will also help Ovintiv with its plan to pay down its debt and so cut the risk for its shareholders.
OVINTIV INC....
OVINTIV INC....
We continue to recommend income-seeking investors stick with high-quality utilities (like the three we review below) instead of bonds. That’s because the increasing likelihood of rising interest rates in the next few years would hurt bond prices.
While utilities would also have to refinance their maturing debt at higher rates, regulators would probably let them pass along most of those costs to their customers....
While utilities would also have to refinance their maturing debt at higher rates, regulators would probably let them pass along most of those costs to their customers....
Exchange-traded funds offer a simple and convenient way for investors to access a variety of investment strategies. From plain vanilla, index-tracking funds focused on stocks, to high-risk, highly leveraged ETFs focused on the most volatile commodities, all are available to investors....
We continue to recommend conservative investors limit their oil holdings to integrated producers such as these three. Their upstream (or producing) businesses benefit from higher crude prices. Their downstream (refining) businesses, on the other hand, convert crude into gasoline and other fuels and so profit when oil prices fall....
Canadian Utilities remains a great pick for income-seeking investors. In fact, in our TSI Dividend Advisor newsletter, the company earns our “Highest” Dividend Sustainability Rating. That measures how likely a company is to maintain—or, even better, keep raising—its dividend....
Oil prices continue to improve as the global economy rebounds from COVID-19 shutdowns. That should support the current dividends from these two producers. They are also cheap in relation to their cash flow.
SUNCOR ENERGY INC. $27 remains a buy. The company (Toronto symbol SU; Cyclical-Growth Payer Portfolio, Resources sector; Shares outstanding: 1.5 billion; Market cap: $40.5 billion; Dividend yield: 3.1%; Dividend Sustainability Rating: Average; www.suncor.com) is Canada’s largest integrated oil firm, with major projects in the Alberta oil sands....
BIRCHCLIFF ENERGY, $3.00, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (www.birchcliffenergy.com; Shares outstanding: 266.0 million; Market cap: $776.8 million; Dividend yield: 0.7%) explores for and produces oil and gas....
The United Arab Emirates is a small country in a potentially volatile region, with neighbours like Yemen and Iran nearby. Still, it has used its oil riches wisely to diversify the economy and become a major commercial hub in the Middle East.
Here’s an ETF that provides exposure to the top companies listed in the UAE.
ISHARES MSCI UAE ETF $13.42 (New York symbol UAE; TSINetwork ETF Rating: Aggressive; Market cap: $27.9 million) tracks the performance of the largest publicly listed UAE companies.
Financial Services account for 51% of its assets, while Telecommunications (15%), Real Estate (14%), Industrials (10%), and Energy (5%) are other key segments.
The ETF has a portfolio of 32 stocks; the top 10 holdings make up a high 72% of its assets....
Here’s an ETF that provides exposure to the top companies listed in the UAE.
ISHARES MSCI UAE ETF $13.42 (New York symbol UAE; TSINetwork ETF Rating: Aggressive; Market cap: $27.9 million) tracks the performance of the largest publicly listed UAE companies.
Financial Services account for 51% of its assets, while Telecommunications (15%), Real Estate (14%), Industrials (10%), and Energy (5%) are other key segments.
The ETF has a portfolio of 32 stocks; the top 10 holdings make up a high 72% of its assets....