Crude oil’s plunge has continued unchecked thanks to firm supplies and weak demand. Since last summer’s peak, black gold has plunged about 60% to current prices around $45 per barrel. It goes without saying that oil stocks have moved in a similar fashion. The broad sector proxy — the Energy SPDR (XLE) — is off by about a third over the past 52 weeks. That drop in price obviously would appeal to those looking for long-term value stocks to buy, but another group of investors should be licking their lips: income hunters. Many oil stocks — including a number of high-quality names — are increasingly attractive from a dividend perspective thanks to those price drops.
The XLE itself sports a 30-day SEC yield of 3.2%, and that’s after having yielded in the 1.5% to 1.8% range within the past couple of years. That yield certainly beats the pants off 10-year Treasuries and puts oil stocks on par with many more traditional high-yielding sectors that don’t have the same potential for rebound gains. Today, we’ll look at a number of beaten-down oil stocks to buy for their suddenly much more appealing dividends: Exxon Mobil (XOM), Occidental Petroleum (OXY), Murphy Oil (MUR), Kinder Morgan (KMI) and Apache (APA).
Source: InvestorPlace
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