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.
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Energy Stocks Library Archives
ROYAL BANK OF CANADA $128 (www.rbc.com) is a buy. The bank has agreed to sell its European asset servicing and custodial operations to a business jointly owned by France’s Crédit Agricole S.A....
Even though oil and gas prices are down about a third from their recent peaks, they remain elevated compared to the past few years. Those high prices are letting Cenovus and Ovintiv pay down debt, which cuts their risk. Both are also increasing the cash they send to shareholders.
CENOVUS ENERGY INC....
CENOVUS ENERGY INC....
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., $64.87, is a buy. The company (Toronto symbol IMO; Shares o/s: 636.7 million; Market cap: $41.3 billion; TSINetwork Rating: Average; Dividend yield: 2.1%; www.imperialoil.ca) is teaming up with E3 Lithium Ltd....
APA CORP. $35 is a hold. The company (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 338.2 million; Market cap: $11.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.9%; TSINetwork Rating: Average; www.apacorp.com) produces oil and natural gas in the U.S., Egypt and the U.K.
Thanks to the rise in crude oil prices over the past few months, APA is now doubling your quarterly dividend....
Thanks to the rise in crude oil prices over the past few months, APA is now doubling your quarterly dividend....
IMPERIAL OIL LTD. $64 is a buy. This company (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 636.7 million; Market cap: $40.7 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.1%; TSINetwork Rating: Average; www.imperialoil.ca) gets about 60% of its production from oil sands operations in Alberta....
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....
CENOVUS ENERGY, $24.64, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 1.9 billion; Market cap: $47.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 1.7%; www.cenovus.com) has now agreed to buy the 50% of an oil refinery in Toledo, Ohio, that it doesn’t already own from U.K.-based oil giant BP plc (New York symbol BP).
In exchange, Cenovus will pay $300 million U.S....
In exchange, Cenovus will pay $300 million U.S....
CHEVRON CORP. $163 is a buy. The company (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.0 billion; Market cap: $326.0 billion; Price-to-sales ratio: 1.5; Dividend yield: 3.5%; TSINetwork Rating: Average; www.chevron.com) is the second-largest integrated oil producer in the U.S....
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)....