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
Canada’s federal government recently announced new greenhouse gas (GHG) reduction targets. Those include cutting emissions from oil and gas producers by 42% before 2031. That new target is more aggressive than Suncor’s or Imperial Oil’s own plan. Even so, meeting it is unlikely to severely impact their earnings considering the government will help offset their costs for new carbon-reduction technologies....
Oil and gas stocks have moved up lately 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....
Oil and gas stocks have moved up as the U.S. and other economies recover. The war in Ukraine has also driven up 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 stick with producers with positive cash flow even at low energy prices....
Oil prices continue to strengthen as COVID-19 travel and other restrictions ease. Despite new government regulations to limit carbon emissions, crude prices will remain elevated as producers like Chevron focus on improving their efficiency instead of increasing production....
Oil and gas prices have moved up lately. But the future direction of energy prices depends on a lot of things, particularly economic growth rates around the world in the wake of COVID-19. Meanwhile, though, well-established companies in the industry took advantage of the earlier setback to pick up properties and employees who might be harder to find in more-prosperous times.
Those top companies also have the strength to survive, even if energy prices drop and to continue paying dividends....
Those top companies also have the strength to survive, even if energy prices drop and to continue paying dividends....
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....