Nine Dividend-Paying Oil Investments to Purchase as the Energy Market Heats Up

Nine dividend-paying oil investments to purchase as the economy heats up and energy prices climb belong to an industry that will be fueled by $100 a barrel Brent crude in 2022, according to a recent report by BoA Global Research. The nine dividend-paying oil investments to purchase amid the improving economy and rising oil prices include four funds, the country’s biggest refiner of the so-called “black gold” and five stocks that BoA rates as “buy.” The forecast of $100 a barrel for Brent crude next year came from BoA’s commodity team, even though its equity research colleagues are not quite as bullish.

A good choice for investors is the ETF iShares GSCI Commodity Dynamic Roll (COMT), Carlson continued. “Another good choice is Parametric Commodity Strategy (EAPCX), an open-end mutual fund,” Carlson said. One such stock that Perry recommends is Findlay, Ohio-based Marathon Petroleum Corp. (NYSE:MPC), America’s largest oil refiner. All the majors are down 10-25%, so all you really need to do is pick up a broad market-cap-weighted basket like the Energy SPDR (NYSE:XLE) and wait for rising crude to lift all the boats.” For investors who want to buy a more concentrated oil allocation, an outside-the-box idea is natural gas processor Williams Companies (NYSE:WMB), which offers an implied yield of 6.4% and is showing significant stress, Kramer counseled. A recent research report by BoA identified five oil stocks as buys. Exxon Mobil Corp. stands out at the top of the group. Occidental Petroleum Corp. (NYSE:OXY) received a $44 price target from BoA that would mark a 65.5% jump from the company’s closing price of $26.58 on July 23. Hess Corp. (NYSE:HES) received a price objective of $115 from BoA, 54.6% above its closing stock price of $74.38 on July 23. Diamondback Energy Inc. (NYSE:FANG) garnered a $114 price objective from BoA, 45.7% above the stock’s closing share price of $78.23 on July 23. Deven Energy Corp. (NYSE:DYN) received a $40 price objective from BoA, 56.1% above the stock’s closing share price of $25.63 on July 20.

Source: Dividend Investor

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