The biggest news in the energy markets last year became a reality on January 1 as OPEC finally cut its production for the first time in years. While it is no secret that some countries will cheat, and Iran has no intention of slowing its newly resumed oil sales, there is reason to believe that most will adhere to the cuts, as the spot price of oil needs to be higher for many Middle East nations as that is their main source of revenue.
Fundamental conditions for the integrated oil sector are arguably the most favorable since 2012. Company self-help measures have driven break-even prices down to $50 per barrel, while OPEC intervention in the oil markets has likely put a floor on Brent prices in the low- $50’s. In other words, the sector is now able to cover its dividend burden with free cash flow; in fact, we expect a sector free cash flow yield of 5.1% in 2017, which exceeds the dividend yield of 4.6%. These three top U.S. stocks make the cut at Jefferies, and all are rated Buy at the firm: Chevron Corp. (CVX), Marathon Oil Corp. (MRO) and Royal Dutch Shell PLC (RDS-A).
Source: Yahoo Finance
Related Articles:
- 6 Higher Yielding Basic Materials Stocks With Growing Dividends
- 7 Dividend Growth Stocks That Could Make You Wealthy
- A Roadmap To Build Wealth With Dividend Stocks
- High-Yield Managed Distribution Policy Funds
- 6 Blue Chip Dividend Stocks For When the Chips Are Down
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Having a few trusty dividend stocks that you can approach with a "set it and forget it" mindset takes a lot of the stress out of i...
-
REITs don’t just pay out attractive yields; many of these companies are terrific operators too. So not only do investors get to collect a so...
-
The company reported solid results for its fourth fiscal quarter. The business development company once again covered its dividend payout wi...
-
It’s in volatility like this that the value of dividends truly shines through. The market could be having a massive sell-off, but when a com...
-
If you are interested in high-yield dividend stocks, it’s better to focus on a company’s history of growing its dividend rather than just lo...
-
When the average S&P 500 company pays less than two percent, a 6.5%-yielding stock certainly deserves income investors’ attention. A Top...
-
When it comes to stock investing while in retirement, dividend stocks tend to be some of best investments you can make. Not only do they ten...
-
While conventional wisdom holds that you reach for yield, my strategy has been to look first for capital gains, then to management teams tha...
-
There are hundreds of high-yield dividend stocks on the market. At least, that's the case if your definition of high dividend yield isn&...
-
I screened for cheap dividend stocks that are showing some upward movement, trading above their 50-day moving average, with a 3% or higher d...
0 comments
Post a Comment
Post a Comment