Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered 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

Energy Stocks

Devon Energy hikes its dividend

DEVON ENERGY, $42.29, is a buy. The company (New York symbol DVN; TSINetwork Rating: Extra Risk) (www.dvn.com; Shares outstanding: 677.0 million; Market cap: $29.4 billion; Dividend yield: 1.0%) now pays out as much as 50% of its excess free cash flow in dividends....

1 min read

Pat McKeough

Energy Stocks

Take advantage of rising crude prices

Oil stocks continue to rebound from their 2020 lows as the re-opening of the global economy pushes oil and gas prices to multi-year highs. We feel those prices will remain elevated, as producers focus on improving their efficiency instead of spending more on exploration given new caps on greenhouse emissions....

6 min read

Pat McKeough

Energy Stocks

Cenovus shares are cheap

CENOVUS ENERGY, $15.03, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $30.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.5%.; www.cenovus.com) continues to sell less-important properties to pay down debt.

The cash from those sales will help cut Cenovus’s net debt (total debt less cash balances) from $12.4 billion U.S....

1 min read

Pat McKeough

Energy Stocks

Imperial rides the energy rebound

Oil prices have more than doubled over the last year to today’s price of roughly $83 U.S. a barrel. Natural gas prices are also up. Increased industrial activity is driving those gains as the world recovers from the pandemic. Still, energy prices will likely remain subject to wide and unpredictable swings—spurred by continually changing supply and demand, environmental pressures, and the shift to electric vehicles....

1 min read

Pat McKeough

Energy Stocks

Here’s a good way to cash in on oil’s rise

Investors have moved away from oil stocks in the past few months due to government mandates to cut carbon emissions. However, it’s likely crude prices will move up over the next few years as producers focus on their current properties and spend less on exploration....

2 min read

Pat McKeough

Energy Stocks

Let our updates keep you on track

CENOVUS ENERGY, $12.85, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $25.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.5%.; www.cenovus.com) completed its acquisition of rival oil producer Husky Energy in January 2021.

The combined firm is now Canada’s third-largest producer of oil and natural gas, with output of about 750,000 barrels of oil equivalent per day....

2 min read

Pat McKeough

Energy Stocks

Buy these producers for oil-and-gas gains

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....

2 min read

Pat McKeough

Energy Stocks

Savvy mergers cut your energy-stock risk

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 have taken advantage of the setback to pick up properties and employees who might be harder to find in more-prosperous times.

These two top companies have also made key mergers and implemented strategies to prosper—and to continue paying dividends—even if energy prices drop....

2 min read

Pat McKeough

Energy Stocks

Imperial is still a great pick as oil stabilizes

Oil prices continue to recover as COVID-19 lockdowns end. It seems likely that prices will remain firm as the economy further opens. We continue to recommend all investors maintain some exposure to oil, particularly with high-quality integrated producers like Imperial Oil.

IMPERIAL OIL LTD....

2 min read

Pat McKeough

Energy Stocks

Ovintiv hikes your income

OVINTIV INC., $34.53, is a buy. The energy producer (Toronto symbol OVV; Shares o/s: 261.1 million; Market cap: $9.0 billion; TSINetwork Rating: Average; Dividend yield: 2.0%) operates three core properties: Montney (B.C.), Anadarko (Oklahoma) and Permian (Texas)....

1 min read

Pat McKeough

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Browse Premium Topics

Cannabis

Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.