If you have had your finger on the pulse on the stock market this year, then you would be well aware of the fact that energy stocks have taken quite a beating. The price of oil has been unstable and is not very friendly, while natural gas is not exactly helping matters either.
However, you know that investing in stocks is something that goes in cycles. That means that there must be some great buys out there right now given all the stocks that have tanked in value recently. According to many seasoned investors, you would be correct in that sentiment. There are quite a few energy stocks that are ripe for the picking right now. Here are five of them to provide food for thought.
If you are looking for clean energy penny stocks, this is not necessarily one of them. That said, BP has historically performed rather well. Just recently, the company announced that it would be selling much of its interest in Alaskan oil. This will generate more than $4 billion coming directly to BP. This certainly helps their balance sheet, even in a down year. BP also pays out a respectable dividend, currently in the range of 6.7%. While many investors have been shying away from BP in recent years, that is not likely to continue.
Here is a company that many investors are not paying attention to at the present time. This is despite the fact that it historically produces quite a bit of income for big and small investors alike. Just consider for a moment the reality that ExxonMobil has a streak going on 36 years of consecutive dividend increases. Not many companies in any sector of the economy can claim this. They have been through ups and downs through the decades, yet they have never missed a dividend payment. That makes it a stock that is worthwhile buying right now.
Suncor specializes in the oil sands of Canada. This has become one of the cheapest sources of oil in all of North America. While there are huge upfront costs to consider, the upside is that production ramps up once the infrastructure is properly laid. That is why so many investors have shied away from Suncor in recent years, as they were burning through cash. However, they are now at a stage where they can properly produce revenue generating energy. Their stock yield is currently 4.53%, making it an attractive buy.
That is why so many investors have shied away from Suncor in recent years, as they were burning through cash. However, they are now at a stage where they can properly produce revenue generating energy. Their stock yield is currently 4.53%, making it an attractive buy.
Canadian Natural Resources
Here is another Canadian based company that is banking heavily on oil sands. A major benefit here is that the company also has energy holdings in other places around the world, making it well diversified. It has a market cap of $27 billion, making it one of the larger energy companies in Canada. It also pays out a dividend in the range of 5%, making it attractive to income investors.
This is the year of the Canadian energy stock. It is a mid-level company that has a solid reputation. It is stable and has long been considered a blue chip stock in the Canadian market. With a dividend that currently yields 6.5%, it is hugely attractive at the moment.
While nothing is a guarantee, these five energy stocks are positioned to do you well in the coming year and beyond. They may not be clean energy penny stocks, but there are some big companies here that have historically rebounded from difficult years, combined with some that are well diversified to withstand major hits. Take a look at each of them and see what you think for yourself before investing.