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
-
At times like this, it is tempting to jump on a bandwagon and buy up the growth stocks, aiming to capitalize on the broader trends. But is t...
-
In today’s near-zero interest rate environment, it’s been tough for investors looking for yield. There are many high-yielding dividend stock...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Three high dividend stocks to buy now feature a business development company (BDC), a national real estate investment trust (REIT) and the o...
-
The research analysts at Wells Fargo have been searching the markets for the ‘right’ buys, and their picks bear a closer look. They’ve been ...
-
This past year has been the ultimate stress test for dividend stocks. Some companies failed miserably as they either slashed or suspended th...
-
Dividend stocks are a great choice for investors looking for a regular income stream. The best dividend stocks offer a growing payout in add...
-
The dividend-paying cleaning stocks to buy now amid the COVID-19 pandemic should benefit from heightened sanitary expectations by consumers ...
-
Rather than subject themselves to this risk, savvy investors can stabilize their portfolios by taking positions in reliable dividend growth ...
-
The best dividend stocks can generate excellent long-term returns. Even better, investors can buy high-quality dividend stocks when they are...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.