Energy companies have not been the greatest investments over the last several years. Plunging price realizations have hurt oil companies' upstream results across the board. Levered upstream companies in the U.S. shale oil and gas patch have been hurt particularly badly. This company's shares have risen ~14 percent year-to-date. Stabilizing energy prices should support its upstream results moving forward. I continue to see more upside. An investment yields ~7 percent.
Integrated oil companies like BP (NYSE:BP), ExxonMobil (NYSE:XOM), or Chevron Corp. (NYSE:CVX) have done much better than oil companies that have been more heavily exposed to the upstream sector - think ConocoPhillips (NYSE:COP) -, but they have nonetheless been terrible investments as well. However, big oil companies have started to rebound in 2016, and quite significantly, too. Take a look at BP, for instance, whose shares have risen ~14 percent since January. BP is by far not the only company that has seen an uptick in investor interest after oil prices bottomed out in the 1st quarter of this year. Most big oil companies have profited from a rebound in investor optimism that went hand in hand with stabilizing crude oil prices. The bottom surely is in, don't you think?
Source: Seeking Alpha
Related Articles:
- How To Build A Sustainable High Yield Portfolio
- How To Buy Dividend Stocks At The Bottom
- 10 Stocks That Have Paid Dividends Since The 1800s
- Are You Patient Enough To Be Wealthy? These 7 Dividend Stocks Will Help You Wait
- Three Keys For Successful Dividend Growth Investing
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
It's impossible to follow the specific investing strategies of the world's best investors. After all, we don't always know why t...
-
You know what's good to see in one of your holdings? Management actually doing what they said they were going to do. The yield is 9.97%,...
-
Many investors focus their portfolios on either growth stocks (if they're a long way from retirement) or income stocks (if they're n...
-
Regulators typically set customer rates for utilities to ensure investors recover a fair return on capital and allows the businesses keep th...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
Market volatility is scarily high. Interest rates on sidelined cash are scarily low. Investors looking to de-risk or take some profits off o...
-
When dividend-paying companies are undervalued, investors stand to gain a constant stream of dividend income on top of capital gains, as ove...
-
Holding a stake in great businesses that regularly pay dividends and then reinvesting those payouts is one of the most dependable paths to l...
-
Most monthly payers are REITs of some kind – and a good chunk are mortgage REITs, which are facing rising interest rates. Some ETFs also off...
I think with Trump coming in I think green energy stocks may lose favor while traditional oil companies rebound. I also think that Keystone XL will probably get passed which will allow oil to stay competitive in the US for the foreseeable future.