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.
- Invest mainly in well-established companies;
- Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
- Downplay or avoid stocks in the broker/media limelight.
[text_ad]
Read More
Close
Energy Stocks Library Archives
IMPERIAL OIL LTD. $65 is a buy. This company (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 584.2 million; Market cap: $38.0 billion; Price-to-sales ratio: 0.7; Dividend yield: 3.1%; TSINetwork Rating: Average; www.imperialoil.ca) gets about 90% of its production from oil sands operations in Alberta....
We feel all investors should maintain some exposure to oil and gas—and here are two Canadian leaders we think have lots of growth ahead.
OVINTIV INC., $50.35, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 276.3 million; Market cap: $13.7 billion; TSINetwork Rating: Average; Dividend yield: 3.2%) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah)....
OVINTIV INC., $50.35, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 276.3 million; Market cap: $13.7 billion; TSINetwork Rating: Average; Dividend yield: 3.2%) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah)....
OVINTIV INC. $51 is a buy. The company (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 244.5 million; Market cap: $12.5 billion; Price-to-sales ratio: 0.7; Dividend yield: 3.1%; TSINetwork Rating: Average; www.ovintiv.com) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah)....
CENOVUS ENERGY INC. $24 is a buy. Canada’s third-largest producer of oil and natural gas (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $45.6 billion; Price-to-sales ratio: 0.7; Dividend yield 2.3%; TSINetwork Rating: Average; www.cenovus.com) had to curtail operations at its Rainbow Lake property, 900 kilometres northwest of Edmonton, due to the wildfires in Alberta....
CRESCENT POINT ENERGY, $8.56, is a buy for aggressive investors. The company (Toronto symbol CPG; Shares outstanding: 548.0 million; Market cap: $4.9 billion; TSINetwork Rating: Speculative; Dividend yield: 4.7%; www.crescentpointenergy.com) produces oil and natural gas in Western Canada, with a focus on its Bakken light oil development in southeastern Saskatchewan.
The company reports that it has brought back on line the Kaybob Duvernay production site (45,000 barrels per day)....
We recommend that most investors maintain exposure to the oil and gas industry as part of a balanced portfolio. Still, to cut risk, you should focus on producers with positive cash flow even at low energy prices. Here are two stocks that meet that requirement—and pay dividends.
ARC RESOURCES, $16.36, is a buy. The company (Toronto symbol ARX; Shares o/s: 611.3 million; Market cap: $10.2 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.2%; www.arcresources.com) produces natural gas as well as oil. Its average output of 338,377 barrels of oil equivalent per day is 62% natural gas and 38% oil.
Cash flow per share in the quarter ended March 31, 2023, rose 7.4%, to $1.16 from $1.08 a year earlier....
ARC RESOURCES, $16.36, is a buy. The company (Toronto symbol ARX; Shares o/s: 611.3 million; Market cap: $10.2 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.2%; www.arcresources.com) produces natural gas as well as oil. Its average output of 338,377 barrels of oil equivalent per day is 62% natural gas and 38% oil.
Cash flow per share in the quarter ended March 31, 2023, rose 7.4%, to $1.16 from $1.08 a year earlier....
Despite a recent decision by OPEC to cut production, crude oil prices are still down about 10% since the start of 2023. That’s largely due to slowing economic growth in China, even after lifting most COVID-19 restrictions. High interest rates have also increased fears of a slowdown in the U.S....
TD BANK, $81.47, (Toronto symbol TD; Shares outstanding: 1.8 billion; Market cap: $147.7 billion; TSINetwork Rating: Above Average; Dividend yield: 4.7%; www.td.com) merged its 43%-owned U.S....
The shares of oil and gas stocks remain high as energy demand continues to be strong. We continue to recommend that most investors maintain some exposure to the oil and gas industry as part of a balanced portfolio. But, to cut your risk, you should stick with producers that have positive cash flow even in times of low energy prices....
OVINTIV INC., $44.96, is a buy. The energy producer (Toronto symbol OVV; Shares o/s: 243.6 million; Market cap: $11.3 billion; TSINetwork Rating: Average; Dividend yield: 3.6%) operates three core properties: Montney (B.C.), Anadarko (Oklahoma) and Permian (Texas).
Ovintiv is now buying 1,050 wells in the Permian basin from private equity firm EnCap Investments L.P....
Ovintiv is now buying 1,050 wells in the Permian basin from private equity firm EnCap Investments L.P....