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
The price for Western Canadian crude oil jumped from an average $4.92 a barrel in April to $46.03 in June as Canada and other countries began to ease COVID-19 lockdowns.
Strengthening oil prices, combined with aggressive cost cuts, improve the prospects of these four oil producers....
Strengthening oil prices, combined with aggressive cost cuts, improve the prospects of these four oil producers....
OVINTIV INC., $14.66, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 259.8 million; Market cap: $3.8 billion; TSINetwork Rating: Average; Dividend yield: 3.6%) recently became a U.S. company and changed its name from Encana Corp.
A key reason for the move to the U.S....
IMPERIAL OIL LTD. $21.84, is a buy for safety-conscious investors. The stock (Toronto symbol IMO; Shares o/s: 734.1 million; Market cap: $16.0 billion; TSINetwork Rating: Average; Dividend yield: 4.0%; www.imperialoil.ca) lets you tap Canada’s third-largest publicly traded oil producer, after Suncor (No....
COMPUTER MODELLING GROUP $5.13 is still a buy. The company (Toronto symbol CMG; TSINetwork Rating: Extra Risk) (www.cmgl.ca; Shares o/s: 80.2 million; Market cap: $419.7 million; Dividend yield: 3.9%) cut its quarterly dividend by 50%, to $0.05 a share from $0.10, with the June 2020 payment....
Oil prices are moving up as OPEC producers and others cut their supply because of reduced global demand due to the pandemic. We feel oil prices will continue to move higher as more countries reopen their economies.
However, with oil and gas prices still at historically low levels, it’s unlikely that renewable power sources will soon replace the need for fossil fuels....
However, with oil and gas prices still at historically low levels, it’s unlikely that renewable power sources will soon replace the need for fossil fuels....
BONAVISTA ENERGY, $0.15, is now a sell. The company (Toronto symbol BNP; Shares outstanding: 265.2 million; Market cap: $38.6 million; TSINetwork Rating: Speculative; No dividends paid; www.bonavistaenergy.com) has total debt of $844.0 million, which dwarfs its depressed market cap of $37.5 million.
But not only that, Bonavista is now in breach of its debt covenants....
But not only that, Bonavista is now in breach of its debt covenants....
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....
Despite the double shock of COVID-19 and the Saudi Arabia-Russia oil price war, investors should keep some exposure to the oil industry. Still, we prefer integrated firms like Chevron over riskier producers like Apache.
CHEVRON CORP. $94 remains a buy for the Resources sector of your portfolio. The company (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $178.6 billion; Price-to-sales ratio: 1.3; Dividend yield: 5.5%; TSINetwork Rating: Average; www.chevron.com) is the second-largest integrated oil producer in the U.S....
CHEVRON CORP. $94 remains a buy for the Resources sector of your portfolio. The company (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $178.6 billion; Price-to-sales ratio: 1.3; Dividend yield: 5.5%; TSINetwork Rating: Average; www.chevron.com) is the second-largest integrated oil producer in the U.S....
Here are key updates on your holdings: Cenovus Energy Inc., SNC-Lavalin Group Inc. and Torstar Corp.
CENOVUS ENERGY INC. $5.03 remains a buy for patient investors. The company (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares o/s: 1.2 billion; Market cap: $6.0 billion; Price-to-sales ratio: 0.3; 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....
IMPERIAL OIL LTD. $22.67, is a buy for safety-conscious investors. The stock (Toronto symbol IMO; Shares o/s: 739.2 million; Market cap: $16.8 billion; TSINetwork Rating: Average; Dividend yield: 3.9%; www.imperialoil.ca) lets you tap Canada’s third-largest publicly traded oil producer, after Suncor (No....