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
APA CORP. $44 is a hold. The company (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 321.5 million; Market cap: $14.1 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.3%; TSINetwork Rating: Average; www.apacorp.com) produces oil and natural gas in the U.S., Egypt and the U.K.
APA now plans to return 60% of its free cash flow (regular cash flow less capital expenditures) to shareholders through dividends and share buybacks....
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....
Cenovus plans to spend between $4.0 billion and $4.5 billion on exploration and upgrades in 2023....
The shares of oil and gas stocks remain high as the U.S. and other economies recover—and with the Ukraine conflict. 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 risk, you should stick with producers that have positive cash flow even in times of low energy prices....
IMPERIAL OIL LTD., $62.11, is a buy. The company (Toronto symbol IMO; Shares o/s: 604.8 million; Market cap: $38.3 billion; TSINetwork Rating: Average; Dividend yield: 2.8%; www.imperialoil.ca) now plans to spend $1.7 billion on capital upgrades and exploration in 2023....
Like Imperial Oil (see page 1), these three oil and gas producers are also benefitting from higher energy prices and moderating capital spending plans. That’s freeing up more cash for dividends and debt repayments.
We continue to see all three as high-quality buys for the Resources portion of your portfolio....
We continue to see all three as high-quality buys for the Resources portion of your portfolio....
Crude oil prices have steadily declined to the current $74 U.S. per barrel after soaring to about $124 U.S. in March 2022. That was following Russia’s invasion of Ukraine. Note, however, that today’s price is still above the pre-pandemic price of around $60 U.S.
It’s likely crude prices will remain elevated for some time as Canadian oil producers, like Imperial Oil, and their U.S....
It’s likely crude prices will remain elevated for some time as Canadian oil producers, like Imperial Oil, and their U.S....
IMPERIAL OIL LTD., $76.53, is a buy. The company (Toronto symbol IMO; Shares o/s: 604.8 million; Market cap: $47.2 billion; TSINetwork Rating: Average; Dividend yield: 2.3%; www.imperialoil.ca) will raise your quarterly dividend by 29.4% with the January 2023 payment....
Oil and gas stocks have moved up as the U.S. and other economies recover. The war in Ukraine has also spurred prices. We recommend that most investors maintain exposure to the oil and gas industry as part of a balanced portfolio. But to cut risk, you should focus on producers with positive cash flow even at low energy prices....
Chevron rebounded strongly as re-opening of the global economy lifted crude oil prices—the stock is up 62% in the past year compared to the 14% drop for the S&P 500 Index.
While oil prices could suffer if the economy weakens, higher profits from Chevron’s refining operations (which need crude oil) would help offset that decline....
While oil prices could suffer if the economy weakens, higher profits from Chevron’s refining operations (which need crude oil) would help offset that decline....
Oil and gas stocks have moved up lately as the U.S. and other economies recover. Birchcliff Energy shares have almost tripled over the last year. Still, the shares remain cheap for investors looking to profit from the continuing energy rebound.
BIRCHCLIFF ENERGY, $10.72, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (Shares o/s: 265.9 million; Market cap: $2.9 billion; Dividend yield: 0.8%) reports that its cash flow in the quarter ended September 30, 2022, jumped 60.3%, to $1.01 a share from $0.63 a year earlier....