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
IMPERIAL OIL LTD., $97.84, is a buy. The company (Toronto symbol IMO; Shares o/s: 535.8 million; Market cap: $51.7 billion; TSINetwork Rating: Average; Dividend yield: 2.5%; www.imperialoil.ca) gets over 90% of its production from oil sands operations in Alberta....
We recommend that most investors maintain some exposure to the oil and gas industry as part of a balanced portfolio. That’s mainly because it offers a hedge (some protection) against inflation.
To further cut your risk, you should focus mainly on high-quality producers, like Chevron, with large reserves in politically stable countries....
CENOVUS ENERGY INC. $24 is a buy. The country’s third-largest oil producer (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $45.6 billion; Price-to-sales ratio: 0.8; Dividend yield 2.3%; TSINetwork Rating: Average; www.cenovus.com) plans to spend between $4.5 billion and $5.0 billion on exploration and upgrades in 2024....
CENOVUS ENERGY, $23.42, is a buy for long-term gains. The company (Toronto symbol CVE; Shares o/s: 1.9 billion; Market cap: $44.4 billion; TSINetwork Rating: Average; Yield: 2.4%; www.cenovus.com) expects to spend between $4.5 billion and $5.0 billion on exploration and upgrades in 2024....
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....
ENERPLUS CORP., $23.98, (Toronto symbol ERF; Shares outstanding: 203.3 million; Market cap: $4.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 1.4%) produces oil and gas mostly from properties in the Bakken area of North Dakota, the DJ Basin in Colorado, and the Marcellus Shale in Pennsylvania.
The company’s shares have soared as it has now agreed to a takeover bid from Chord Energy (symbol CHRD on Nasdaq).
Enerplus shareholders will get 0.10125 shares of Chord and $1.84 U.S....
The company’s shares have soared as it has now agreed to a takeover bid from Chord Energy (symbol CHRD on Nasdaq).
Enerplus shareholders will get 0.10125 shares of Chord and $1.84 U.S....
BIRCHCLIFF ENERGY, $4.82, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (Shares outstanding: 266.6 million; Market cap: $1.3 billion; Dividend yield: 8.3%) has cut your quarterly dividend by 50.0% due to lower natural gas prices....
These two oil producers continue to increase their production. That will let them take advantage of the expansion of the TransMountain pipeline, which pumps crude from Alberta to the B.C. coast. The new line will let them sell crude at higher prices than oil shipped to U.S....
CENOVUS ENERGY, $21.78, is a buy for long-term gains. The company (Toronto symbol CVE; Shares o/s: 1.9 billion; Market cap: $41.8 billion; TSINetwork Rating: Average; Yield: 2.6%; www.cenovus.com) has formed a new joint venture with Athabasca Oil (...
OVINTIV INC., $57.03, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 272.9 million; Market cap: $16.0 billion; TSINetwork Rating: Average; Dividend yield: 2.8%) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah).
In 2024, Ovintiv expects to spend between $2.1 billion and $2.5 billion on exploration and equipment upgrades (all amounts except share price and market cap in U.S....