Its cash per share is the second lowest on the list, although not exactly small in the overall scheme of things. The trailing dividend yield over the last five years is also the lowest on the list. But with debt being paid down progressively, there are plans to kick https://investmentsanalysis.info/ this metric up. The company has been a dependable dividend generator, and its five-year average dividend yield remains above 5%, while the total shareholder yield is north of 6%. TTE also has a colossal amount of cash, its $47.6 billion equating to $19.04 per share.
While it’s unlikely to see well-known oil stocks tumble because of geopolitical flashpoints like terrorism or nationalization via a violent coup, it’s not out of the realm of possibility. With countries adversarial to the foreign policy interests of the U.S. flexing their muscle, the world will almost surely be more complicated in the years ahead. When oil sells for less than, many of these companies will lose money. Bulls cite FANG’s compelling valuation – as well as management’s commitment to returning cash to shareholders through buybacks and dividends – as just a few reasons to be constructive on the name. Raymond James analyst John Freeman (Strong Buy) adds that the Biden administration’s recent approval of COP’s Alaska Willow Project is another long-term tailwind for the company. At its peak, Willow is expected to produce a sum of oil equivalent to nearly 40% of the state’s current oil production, Freeman writes.
Chevron
The company leverages vertically integrated operations to keep the costs of these various pursuits down, a system which has worked for shareholders in recent times. Integrated oil companies have some aspects of production, services and refining all in-house. This can mean that their risks are spread out more broadly than companies that specialize in one aspect of the oil industry. Phillips 66 also boasts a strong financial profile, which includes an investment-grade balance sheet with very manageable debt.
The tax structure means higher-than-average returns in dividends or regular payouts. As one of the largest fuel distribution companies in the U.S., Sunoco is one of the top ideas to consider if you’re banking on an economic recovery (or at least a consumer-level recovery). That’s because stronger sentiment should encourage Americans to hit the road, which would have a directly positive impact Best oil stock on SUN stock. While the ebb and flow of the pandemic has made the latter argument somewhat questionable, ENLC has continued to charm stakeholders with its steady move higher. Before we head further, we should acknowledge that 2022 may be a make-it-or-break-it year. Some are worried that the markets may correct or even crash, especially if the Fed’s rate hikes produce unintended consequences.
What are crude oil stocks?
This cleaner-burning fossil fuel is considered a bridge to lower-carbon options. Buffett no doubt likes that OXY stock nearly doubled in 2022, making it one of the best-performing stocks in the S&P 500. He also certainly likes Occidental Petroleum’s low P/E ratio of 5.3. Earnings for the first quarter included revenue of $58.23 billion and EPS of $2.61, both better than expectations for revenue of $50.16 billion and EPS of $2.50.
- Profits and losses can swing wildly based on small shifts in demand or moves by petrostates such as Saudi Arabia and Russia, whose interests can run counter to the public companies in the industry.
- With Europe much more reliant on Russian energy supplies than the U.S., the crisis in Europe over the last year might not be over quite yet.
- And that should allow Chevron to reap the benefits of higher oil prices in 2021, in addition to the benefits of increased scale that will augment its results for years to come.
Without free-flowing stimulus, companies will be far less incentivized to borrow money, which in turn may slow expansionary investments. Such a circumstance could then affect jobs, which may crimp demand for fuel. Later, as the calendar turned the page to 2021, the vaccination rollout began in earnest.
TotalEnergies SE (TTE)
If you want to skip our detailed analysis of the oil, and energy sectors, you can go directly to the 5 Best Oil Stocks that Pay Dividends. Although oil stocks generally move in concert with the price of a barrel of crude, the correlation is not always exact. For example, many oil companies will talk of a “break even” point. This can allow the price of crude to fall a little while these companies can still be profitable. This makes oil stocks a slightly less risky option than trading oil in the options or futures market.
- View the latest top Barchart Exclusives stories, with a focus on today’s important stocks, ETFs, and commodity market news.
- Carefully considering your options and monitoring their performance is the best way to keep your portfolio in good condition.
- However, if you can tolerate potential volatility, it may be worthwhile to get in before the crowd does.
For dynamically-generated tables (such as a Stock or ETF Screener) where you see more than 1000 rows of data, the download will be limited to only the first 1000 records on the table. For other static pages (such as the Russell 3000 Components list) all rows will be downloaded. In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more. Of the 28 analysts issuing ratings on FANG tracked by S&P Global Market Intelligence, 16 call it a Strong Buy, eight say Buy, three have it at Hold and one calls it a Sell. That works out to a consensus recommendation of Buy, with very high conviction.
Top Oil & Gas Stocks for Q2 2023
Should the economic recovery thesis win out over the market crash forecast, you may find it to be one of your favorites too. But soon after the spring doldrums of 2020, vehicle miles traveled in the U.S. (and other nations) rebounded. Domestically, the recovery rally was sharp as people who had been cooped up in their homes just had to get out. Plus, with air travel becoming a questionable transportation method, people preferred to travel the open road for their vacations.
