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
In addition to Cenovus (see page 21), we also like the outlook for these three leading oil producers. All of them are using their improving cash flows to pay down debt, which helps protect them if crude prices weaken. As well, each is raising its dividend and buying back shares.
SUNCOR ENERGY INC....
SUNCOR ENERGY INC....
Despite volatile crude prices, we continue to advise all investors to maintain some exposure to the oil and gas industry. That advice reflects oil’s huge importance to global economic growth even as governments impose new regulations to cut carbon emissions.
We also recommend investors stick with well-established producers like Cenovus....
We also recommend investors stick with well-established producers like Cenovus....
IMPERIAL OIL LTD., $54.44, is a buy. The company (Toronto symbol IMO; Shares o/s: 695.6 million; Market cap: $38.1 billion; TSINetwork Rating: Average; Dividend yield: 2.5%; www.imperialoil.ca) is Canada’s third-largest publicly traded oil company after Canadian Natural Resources (No....
APA CORP. $33 remains a hold. The company (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 363.3 million; Market cap: $12.0 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.5%; TSINetwork Rating: Average; www.apacorp.com) produces oil and natural gas in the U.S., Egypt and the U.K.
APA operates in Egypt though a joint venture with Chinese oil company Sinopec (APA owns two-thirds of this business)....
APA operates in Egypt though a joint venture with Chinese oil company Sinopec (APA owns two-thirds of this business)....
COMPUTER MODELLING GROUP, $4.40, is still a buy. The company (Toronto symbol CMG; TSINetwork Rating: Extra Risk) (www.cmgl.ca; Shares o/s 80.3 million; Market cap: $353.5 million; Dividend yield: 4.6%) reports that in the three months ended September 30, 2021, its revenue fell 10.7%, to $15.9 million from $17.9 million a year earlier....
CENOVUS ENERGY, $16.58, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $32.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.8%; www.cenovus.com) continues to sell less-important assets to pay down the debt it took on as part of the Husky acquisition.
On January 1, 2021, the Cenovus completed its acquisition of rival oil producer Husky Energy Inc....
On January 1, 2021, the Cenovus completed its acquisition of rival oil producer Husky Energy Inc....
Oil and gas stocks have moved up lately as the U.S. and other economies recover. 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., $46.58, is a buy. The company (Toronto symbol IMO; Shares o/s: 695.6 million; Market cap: $32.8 billion; TSINetwork Rating: Average; Dividend yield: 2.3%; www.imperialoil.ca) is Canada’s third-largest publicly traded oil company after Canadian Natural Resources (No....
Oil and gas stocks have moved up as the U.S. and other economies recover. We continue to recommend that most investors maintain 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 at low energy prices....
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 a continuing energy rebound.
BIRCHCLIFF ENERGY, $7.63, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (www.birchcliffenergy.com; Shares outstanding: 267.3 million; Market cap: $2.1 billion; Dividend yield: 0.3%) develops and produces oil and natural gas, mainly in the Peace River Arch area of both Alberta and B.C....
BIRCHCLIFF ENERGY, $7.63, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (www.birchcliffenergy.com; Shares outstanding: 267.3 million; Market cap: $2.1 billion; Dividend yield: 0.3%) develops and produces oil and natural gas, mainly in the Peace River Arch area of both Alberta and B.C....