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
With COVID-19, both Domino’s and Chipotle dropped along with the market. But each has used a savvy strategy to rebound and climb to new highs. We think both companies are well-positioned to capitalize on their popular food offerings to keep attracting more dine-in, pick-up and takeout customers....
Weight Watchers rebranded itself as WW in the fall of 2018, when it expanded its weight-loss services to include “Wellness that works” programs. The move reflects the company’s goal of promoting healthy living, in general, rather than just weight loss.
More important, it also focused on expanding its digital offerings....
BIRCHCLIFF ENERGY, $3.00, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (www.birchcliffenergy.com; Shares outstanding: 266.0 million; Market cap: $776.8 million; Dividend yield: 0.7%) explores for and produces oil and gas....
OVINTIV INC., $30.88, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 261.0 million; Market cap: $8.1 billion; TSINetwork Rating: Average; Dividend yield: 1.5%) has now yielded to pressure from activist investor Kimmeridge Energy Management Co., which owns about 2.5% of Ovintiv’s shares....
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.
Those top companies also have the balance sheet strength to survive, even if energy prices drop, and to continue paying dividends....
Those top companies also have the balance sheet strength to survive, even if energy prices drop, and to continue paying dividends....
Oil prices continue to rebound from their 2020 lows as more parts of the global economy reopen with the rollout of COVID-19 vaccines. OPEC’s commitment to maintain its current production cuts also helps support prices.
That’s good news for these four high-quality producers....
That’s good news for these four high-quality producers....
IMPERIAL OIL LTD., $28.72, is a buy for safety-conscious investors. The company (Toronto symbol IMO; Shares o/s: 734.1 million; Market cap: $20.6 billion; TSINetwork Rating: Average; Divd. yield: 3.1%; www.imperialoil.ca) has dropped plans to develop much of its oil sands holdings in Alberta....
CENOVUS ENERGY, $9.49, remains a buy for patient investors. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $19.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.7%.; www.cenovus.com) has now completed its acquisition of rival oil producer Husky Energy.
The combined firm is Canada’s third-largest producer of oil and gas, with output of about 750,000 barrels of oil equivalent per day....
The combined firm is Canada’s third-largest producer of oil and gas, with output of about 750,000 barrels of oil equivalent per day....
Oil and gas stocks have moved up lately as the U.S. and other economies recover. There’s also rising optimism that vaccine rollouts will accelerate that rebound. But before prices climbed, Crescent Point and ARC Resources both took advantage of the weakness to buy major properties at low prices....
CHEVRON CORP. $103 remains a buy. The company (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $195.7 billion; Price-to-sales ratio: 2.1; Dividend yield: 5.0%; TSINetwork Rating: Average; www.chevron.com) has completed its purchase of Noble Energy Inc....