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
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....
TORSTAR CORP. $0.38 (www.torstar.com) remains a hold, but only for highly aggressive investors. The COVID-19 outbreak has forced many businesses to temporarily shut down. As a result, they are cutting spending on advertising....
IMPERIAL OIL LTD. $18 is still a buy for the Resources sector of your portfolio. The integrated oil producer (Toronto symbol IMO; Conservative Growth and Income Portfolios; Shares outstanding: 743.9 million; Market cap: $13.4 billion; Price-to-sales ratio: 0.4; Dividend yield: 4.9%; TSINetwork Rating: Average; www.imperialoil.ca) is cutting its 2020 capital spending plans by about 30% due to sharply lower crude oil prices....
BCE INC. $55.33, is a buy. The telecom (Toronto symbol BCE; Shares o/s: 904.3 million; Market cap: $50.0 billion; TSINetwork Rating: Above Average; Divd. yield: 6.0%; www.bce.ca) is Canada’s largest traditional telephone service provider: it has 2.7 million residential customers in Ontario, Quebec, Manitoba and the Atlantic provinces....
Long-time readers know that we are constantly evaluating the stocks we recommend to see if they should remain in the Power Growth Investor newsletter.
Although most stocks have dropped in the current market downturn, we feel top-quality shares will be among the first to rebound....
Although most stocks have dropped in the current market downturn, we feel top-quality shares will be among the first to rebound....
NUTRIEN LTD. $44 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares o/s: 572.9 million; Market cap: $25.2 billion; Price-to-sales ratio: 1.3; Dividend yield: 3.9%; TSINetwork Rating: Average; www.nutrien.com) is world’s largest producer of agricultural fertilizers, shipping about 27 million tonnes annually....