oil prices

Despite the possibility of an economic slowdown in 2023, we recommend all investors maintain some exposure to the oil industry. You can further cut your risk—and earn steady income—with top-quality producers like Chevron.


CHEVRON CORP. $166 is a buy. The company (New York symbol CVX; Cyclical-Growth Dividend Payer Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $315.4 billion; Dividend yield: 3.6%; Dividend Sustainability Rating: Above Average; www.chevron.com) is the second-largest integrated oil producer in the U.S....

SHAWCOR LTD. $12 is a buy, but only for highly aggressive investors. The company (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.5 million; Market cap: $846.0 million; Price-to-sales ratio: 0.7; Dividend suspended in March 2020; TSINetwork Rating: Average; www.shawcor.com) is conducting a strategic review of its businesses that serve the oil and gas industry—Pipeline Performance Group, Shaw Pipeline Services, and Oilfield Asset Management....

Prices for commodities such as crude oil, iron ore and copper have weakened lately as investor fear rising interest rates will trigger an economic slowdown. Even so, we continue to recommend all investors maintain exposure to resources as the sector’s high-quality producers will still gain as the economy rebounds.


CHEVRON CORP....

It bears repeating: spinoffs let companies narrow their focus to their core businesses. That pleases investors, as they prefer “pure play” firms that are easier to value.


A good example is cardboard maker WestRock, which spun off its Ingevity chemical business in 2016 to create two pure-play firms....

CANADIAN NATIONAL RAILWAY CO., $160.66, Toronto symbol CNR, is a buy.

CN operates Canada’s largest railway. Its 29,900-kilometre network stretches across the country. It also travels down through the U.S. Midwest, connecting Canada to the Gulf of Mexico.

Starting with the March 2023 payment, CN will raise your quarterly dividend by 7.8%....

DOCUSIGN INC., $59.25, symbol DOCU on Nasdaq, provides its 1.32 million paying customers and over a billion users with a cloud-based software suite that automates the agreement process. Founded in 2003, it generates most of its revenues from its e-signature solution, the world’s leading e-signature product....

MCDONALD’S CORP., $272.46, New York symbol MCD, is your #1 Conservative Buy for 2023.

The company is the world’s largest fast-food chain with over 40,000 restaurants in 119 countries. It serves a wide variety of food but is best known for its hamburgers and french fries.

In 2022, the company continued to prosper despite several challenges, including the sale of its outlets in Russia in response to the invasion of Ukraine and COVID-19 lockdowns in China (which have since eased)....

A: Tamarack Valley Energy Ltd., $4.60, symbol TVE on Toronto (Shares outstanding: 556.4 million; Market cap: $2.5 billion; www.tamarackvalley.ca), is an oil and gas exploration and production firm in Western Canada....

CENOVUS ENERGY, $24.43, is a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 1.9 billion; Market cap: $46.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 1.9%; www.cenovus.com) is now Canada’s third-largest producer of oil and natural gas, and the country’s second-largest refiner.


Cenovus plans to spend between $4.0 billion and $4.5 billion on exploration and upgrades in 2023....

ROYAL BANK OF CANADA, $130.91, Toronto symbol RY, is a buy.

The bank is raising its quarterly dividend by 3.1%. Starting with the February 2023 payment, investors will receive $1.32 a share instead of $1.28. The new annual rate of $5.28 yields a solid 4.0%.

Royal has also agreed to pay $13.5 billion in cash for the Canadian operations of U.K.-based HSBC Holdings plc (New York symbol HSBC)....