Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered 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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IMPERIAL OIL LTD., $64.87, is a buy. The company (Toronto symbol IMO; Shares o/s: 636.7 million; Market cap: $41.3 billion; TSINetwork Rating: Average; Dividend yield: 2.1%; www.imperialoil.ca) is teaming up with E3 Lithium Ltd. (Toronto Venture symbol ETL) to extract lithium from below the historic Leduc oil field,… Read More
APA CORP. $35 is a hold. The company (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 338.2 million; Market cap: $11.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.9%; TSINetwork Rating: Average; www.apacorp.com) produces oil and natural gas in the U.S., Egypt and the U.K.
Thanks to… Read More
IMPERIAL OIL LTD. $64 is a buy. This company (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 636.7 million; Market cap: $40.7 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.1%; TSINetwork Rating: Average; www.imperialoil.ca) gets about 60% of its production from oil sands operations in… Read More
Oil and gas stocks have moved up as the U.S. and other economies recover. The war in Ukraine has also spurred prices. We recommend that most investors maintain exposure to the oil and gas industry as part of a balanced portfolio. But to cut risk, you… Read More
CENOVUS ENERGY, $24.64, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 1.9 billion; Market cap: $47.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 1.7%; www.cenovus.com) has now agreed to buy the 50% of an oil refinery in Toledo, Ohio, that it doesn’t already own… Read More
CHEVRON CORP. $163 is a buy. The company (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.0 billion; Market cap: $326.0 billion; Price-to-sales ratio: 1.5; Dividend yield: 3.5%; TSINetwork Rating: Average; www.chevron.com) is the second-largest integrated oil producer in the U.S. by revenue after ExxonMobil… Read More
OVINTIV INC., $60.20, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 258.1 million; Market cap: $16.1 billion; TSINetwork Rating: Average; Dividend yield: 2.1%) operates three core properties: Montney (B.C.), Anadarko (Oklahoma) and Permian (Texas). In addition to natural gas, these fields produce large amounts of… Read More
IMPERIAL OIL LTD., $56.91, is a buy. The company (Toronto symbol IMO; Shares outstanding: 636.7 million; Market cap: $37.7 billion; TSINetwork Rating: Average; Dividend yield: 2.4%; www.imperialoil.ca) is Canada’s third-largest publicly traded oil company after Canadian Natural Resources (No. 1) and Suncor. U.S.-based ExxonMobil (New York symbol XOM)… Read More
Oil and gas prices have moved down lately after a big spike earlier this year, but remain high. The future direction of energy prices depends on a lot of things, particularly economic growth rates around the world. Meanwhile, well-established producers took advantage of the weaker… Read More
The benchmark crude oil price has jumped roughly 31% in the past year, from $75 U.S. a barrel to $98 U.S. That’s due to several factors, including COVID-19 lockdowns in China and sanctions on oil exports from Russia because of its war on Ukraine.
At the… Read More
CENOVUS ENERGY, $26.18, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $51.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 1.6%; www.cenovus.com) has agreed to buy the 50% of the Sunrise oil sands property in northern Alberta that it doesn’t already… Read More
The shares of oil and gas stocks remain high as the U.S. and other economies recover—and with the Ukraine conflict. 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,… Read More
IMPERIAL OIL LTD., $63.54, is a buy. The company (Toronto symbol IMO; Shares outstanding: 636.7 million; Market cap: $40.5 billion; TSINetwork Rating: Average; Dividend yield: 2.1%; www.imperialoil.ca) has completed its plan to buy back $2.5 billion of its common shares through a Dutch auction process.
Under the plan, Imperial… Read More
DEVON ENERGY, $68.46, is a buy. The company (New York symbol DVN; TSINetwork Rating: Extra Risk) (Shares o/s: 660.0 million; Market cap: $46.6 billion; Divd. yield: 5.3%) continues to use acquisitions to expand operations in its core areas. The company just announced the purchase of the Williston Basin… Read More
OVINTIV INC., $73.62, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 258.1 million; Market cap: $18.3 billion; TSINetwork Rating: Average; Dividend yield: 1.4%) operates three core properties: Montney (B.C.), Anadarko (Oklahoma) and Permian (Texas). In addition to natural gas, these fields produce large amounts of… Read More
Oil and gas stocks have moved up as the U.S. and other economies recover. The war in Ukraine has also driven up prices. We recommend that most investors maintain exposure to the oil and gas industry as part of a balanced portfolio. But to cut risk,… Read More
Ovintiv continues to benefit from the sharp rise in crude oil and natural gas prices as the economy rebounds from the COVID-19 lockdowns. The company is now using its surging cash flow to pay down debt and reward investors with rising dividends and share buybacks.
OVINTIV… Read More
SUNCOR ENERGY INC. $46 is a buy. The company (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.44 billion; Market cap: $66.2 billion; Price-to-sales ratio: 1.7; Dividend yield: 4.1%; TSINetwork Rating: Average; www.suncor.com) is Canada’s largest integrated oil firm, with major projects in the Alberta oil… Read More
CENOVUS ENERGY, $25.70, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $49.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 1.6%; www.cenovus.com) completed its acquisition of rival oil producer Husky Energy in January 2021.
The combined firm is now Canada’s third-largest producer… Read More
Chevron and APA have surged to record highs in 2022 thanks to rising crude oil prices. Both are using their extra cash flow to raise their dividends and buy back shares. However, Chevron is the better choice as its refineries will benefit when oil prices… Read More
