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
OVINTIV INC. $58 is a buy. The company (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 264.1 million; Market cap: $15.3 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.8%; TSINetwork Rating: Average; www.ovintiv.com) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah).
Ovintiv continues to allocate 50% of its free cash flow (regular cash flow less capital)—forecast to rise 65% for 2024 to $1.90 billion U.S.—to dividends and share buybacks....
Ovintiv continues to allocate 50% of its free cash flow (regular cash flow less capital)—forecast to rise 65% for 2024 to $1.90 billion U.S.—to dividends and share buybacks....
CENOVUS ENERGY, $27.82, is a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 1.9 billion; Market cap: $50.4 billion; TSINetwork Rating: Average; Dividend yield: 2.6%; www.cenovus.com) has evacuated some of the workers at its Sunrise oil sands project due to wildfires in Northern Alberta.
Even so, the facility continues to operate at normal levels....
Even so, the facility continues to operate at normal levels....
DEVON ENERGY, $48.65, is a buy. The company (New York symbol DVN; TSINetwork Rating: Extra Risk) (www.dvn.com; Shares outstanding: 627.6 million; Market cap: $30.3 billion; Dividend yield: 4.2%) is one of the largest explorers and producers of oil and gas in the U.S.
Devon continues to use acquisitions to expand operations in its core areas....
Devon continues to use acquisitions to expand operations in its core areas....
We continue to advise that all investors maintain some exposure to the oil and gas industry. To further cut your risk, stick with integrated producers like Suncor and Imperial oil, particularly as their cost-cutting plans should give them more room for dividend increases.
SUNCOR ENERGY INC....
SUNCOR ENERGY INC....
CENOVUS ENERGY INC. $27 is a buy. Canada’s third-largest oil producer (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $51.3 billion; Price-to-sales ratio: 0.9; Dividend yield 2.7%; TSINetwork Rating: Average; www.cenovus.com) has modified its shareholder return policy.
Right now, Cenovus returns 50% of its free cash flow (after capital expenditures) to shareholders in the form of higher dividends and share buybacks....
Right now, Cenovus returns 50% of its free cash flow (after capital expenditures) to shareholders in the form of higher dividends and share buybacks....
VEREN INC., $10.74, is a buy for aggressive investors. The company (Toronto symbol VRN; Shares outstanding: 619.5 million; Market cap: $6.7 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.3%; www.vrn.com) is the new name of Crescent Point Energy Corp.
The company has rebranded to highlight its new focus on two key Alberta oil and gas plays.
That’s after the sale of its assets in Utah and Saskatchewan, and acquisitions from Shell PLC and Paramount Resources to build a presence in Alberta’s Kaybob Duvernay region....
The company has rebranded to highlight its new focus on two key Alberta oil and gas plays.
That’s after the sale of its assets in Utah and Saskatchewan, and acquisitions from Shell PLC and Paramount Resources to build a presence in Alberta’s Kaybob Duvernay region....
The shares of oil and gas stocks remain high as energy demand stays strong. 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....
IMPERIAL OIL LTD. $96 is a buy. The company (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 604.8 million; Market cap: $58.1 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.5%; TSINetwork Rating: Average; www.imperialoil.ca) produced an average 421,000 barrels of oil equivalent per day in the first quarter of 2024....
CENOVUS ENERGY, $27.99, is a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 1.9 billion; Market cap: $52.4 billion; TSINetwork Rating: Average; Dividend yield: 2.0%; www.cenovus.com) sends most of its crude oil production to its 50%-owned oil refineries in Illinois and Texas....
Here are two of our top safety-conscious recommendations. Both have growth ahead. Look for that to spur their share prices and your returns.
BCE INC., $45.76, is a buy. The company (Toronto symbol BCE; Shares outstanding: 912.3 million; Market cap: $41.8 billion; TSINetwork Rating: Above Average; Dividend yield: 8.7%) is Canada’s largest traditional telephone service provider....
BCE INC., $45.76, is a buy. The company (Toronto symbol BCE; Shares outstanding: 912.3 million; Market cap: $41.8 billion; TSINetwork Rating: Above Average; Dividend yield: 8.7%) is Canada’s largest traditional telephone service provider....