suncor

Oil prices immediately fell with news of a cease fire in the U.S./Israel-Iran war. We expect prices will eventually stabilize on longer-term easing of tensions and the regular movement of oil tankers through the Strait of Hormuz.


While the earlier March spike in crude oil prices lifted the shares of the three oil producers we examine here, their ongoing efforts to cut drilling and other costs should keep profits rising even after crude prices stabilize.



We continue to recommend that most investors maintain some exposure to the oil industry. You can further cut your risk with these three producers, whose high-quality reserves should last decades.

Exchange-traded funds (ETFs) give you a low-cost, flexible alternative to mutual funds. Here are five ETFs we recommend and one to sell.

SUNCOR ENERGY INC. $79 is a buy. Canada’s largest integrated oil producer (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.2 billion; Market cap: $94.8 billion; Price-to-sales ratio: 1.8; Dividend yield: 3.0%; TSINetwork Rating: Average; www.suncor.com) focuses on major projects in the Alberta oil sands. It also operates four refineries (three in Canada and one in Colorado), along with over 1,800 Petro-Canada gas stations.


The stock is up 7% in the past month as crude oil prices spiked with the war in the Middle East and the disruption of shipping through the Strait of Hormuz.

These two Canadian ETFs track Canada’s best-established indexes and provide low-fee exposure to widely traded blue chip stocks.

You pay brokerage commissions to buy and sell these blue chip ETFs. But their low management fees give them a cost advantage.

Exchange traded funds (ETFs), including Canadian ETFs, are set up to mirror the performance of a stock market index or subindex.

Canadian Tire offers a 4.5% yield and has our Highest TSI Dividend Sustainability Rating – it’s a buy and we feel more price gains are on the way

Suncor Energy offers a strong 4.7% yield as it demonstrates strong operational performance and plenty of integrated resilience against lower oil prices.

The long-term push to sharply cut oil and gas use—including through renewable power generation and electric vehicles (EVs)—will continue. But at the same time, it’s clear that there will be a continuingly prominent role for oil and gas for some time. That means top oil and gas firms will keep profiting—and paying high dividends.


Here are three ETFs that focus on the traditional sources of energy....