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
TELUS, $25.55, is a buy. The company (Toronto symbol T; Shares outstanding: 1.3 billion; Market cap: $32.8 billion; TSINetwork Rating: Above Average; Dividend yield: 4.9%; www.telus.com) continues to roll out its new 5G (fifth-generation) wireless networks....
The global economic slowdown resulting from the coronavirus has hit some industries especially hard. That includes airlines, hotels, casinos and restaurants—and oil and gas. But unlike many of those companies, the best energy stocks for investors continue to report positive cash flow....
IMPERIAL OIL LTD., $22.74, is a buy for safety-conscious investors. The company (Toronto symbol IMO; Shares o/s: 734.1 million; Market cap: $16. billion; TSINetwork Rating: Average; Dividend yield: 3.9%; www.imperialoil.ca) cut this year’s spending on exploration and upgrades by 45% to $900 million....
OVINTIV INC., $17.17, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 259.9 million; Market cap: $4.3 billion; TSINetwork Rating: Average; Dividend yield: 2.8%) continues to improve its efficiency in response to the COVID-19 pandemic and falling oil prices....
APACHE CORP. $14 is still a hold, but only for aggressive investors. The company (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 377.4 million; Market cap: $5.3 billion; Price-to-sales ratio: 1.1; Dividend yield: 0.7%; TSINetwork Rating: Average; www.apachecorp.com) produces oil and natural gas from properties in the U.S., Egypt and the U.K.
In the third quarter of 2020, Apache’s average daily production rose 0.5%, to 393,529 barrels from 391,400 a year earlier....
In the third quarter of 2020, Apache’s average daily production rose 0.5%, to 393,529 barrels from 391,400 a year earlier....
We’re constantly re-evaluating our stock picks. That means moving out of picks with limited growth prospects in favour of stocks in high-growth areas such as, say, pharmaceuticals and technology. These two face market conditions that will weigh on them for the foreseeable future....
We continue to recommend you maintain some exposure to oil stocks as part of the Resources portion of your overall portfolio. The four oil producers we analyze below still have substantial reserves; they’re also doing a good job of cutting their costs. That puts them in a strong position to increase profits as the global economy recovers from COVID-19.
SUNCOR ENERGY INC....
SUNCOR ENERGY INC....
CENOVUS ENERGY, $4.78, remains a buy for patient investors. The company (Toronto symbol CVE; Shares outstanding: 1.2 billion; Market cap: $5. billion; TSINetwork Rating: Average; No dividends paid; www.cenovus.com) has agreed to acquire rival oil producer Husky Energy Inc....
DEVON ENERGY, $8.63, is a buy. The company (New York symbol DVN; TSINetwork Rating: Extra Risk) (www.dvn.com; Shares o/s: 382.6 million; Market cap: $3.4 billion; Dividend yield: 5.1%) is a leading producer of oil and natural gas from wells in Wyoming, Texas, Oklahoma and New Mexico.
Devon will now buy WPX Energy (symbol WPX on New York) to create one of the biggest U.S....
Devon will now buy WPX Energy (symbol WPX on New York) to create one of the biggest U.S....
CENOVUS ENERGY INC. $5.15 remains a buy for patient investors. The company (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.2 billion; Market cap: $6.2 billion; Price-to-sales ratio: 0.4; Dividend suspended in March 2020; TSINetwork Rating: Extra Risk; www.cenovus.com) owns 100% of the Christina Lake and Foster Creek oil sands properties in Alberta....