These safety-conscious stocks remain buys

Article Excerpt

OVINTIV INC., $60.20, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 258.1 million; Market cap: $16.1 billion; TSINetwork Rating: Average; Dividend yield: 2.1%) operates three core properties: Montney (B.C.), Anadarko (Oklahoma) and Permian (Texas). In addition to natural gas, these fields produce large amounts of oil and natural gas liquids. Ovintiv has agreed to sell parts of its properties in Uinta (Utah) and Bakken (North Dakota) basins for $250 million (all amounts except share price in U.S. dollars). To put that in context, its cash flow was $1.04 billion, or $4.05 a share, in the three months ended March 31, 2022. The proceeds will let Ovintiv accelerate its plan to enhance shareholder returns. In the first half of 2022, it allocated 25% of its free cash flow to dividends and share buybacks, and 75% to debt repayments. Starting in the third quarter, it will return 50% of its cash flow to investors. That’s three months earlier than its original target. The company last…

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