3 Oil Stocks to Buy No Matter if Crude Prices Rise or Fall
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Look for oil stocks to buy as the best opportunities today, whether crude oil prices are rising or falling. These companies provide valuable energy resources to fuel our cars, homes, and businesses and tremendous opportunities for investors looking to profit from a market with well-established trends.
Overall, there are three key oil stocks to buy that investors should keep an eye on, no matter what the market looks like. These companies have proven track records of success in both up and down markets. And they offer the features and stability that savvy investors value most.
If you are looking for oil majors for your portfolio, you have come to the right place.
EOG Resources (EOG)
EOG Resources (NYSE:EOG) is an oil and gas exploration and production company focusing on shale extraction. Its success is partly due to its innovative drilling approaches, allowing it to tap into previously untapped natural resources. EOG’s experience and expertise have also contributed to its continued success.
The company plans to redistribute 60% of its free cash flow to stockholders yearly. This will mainly come from the company’s steadily increasing quarterly dividends. It upped its dividend 86% earlier this year, pushing the annualized payout to $3 per share. EOG plans to invest heavily in growth projects with high investment returns. This combination of returning cash while expanding EOG’s core business will help ensure that EOG remains one of the top oil and gas companies in the market for years to come.
EOG may repurchase shares opportunistically or pay a special dividend if the company’s cash dividend pays out too low. EOG has already paid out $4.30 for each share of special dividends this year.
We will get further insight into the company’s financial situation when the company next reports earnings on Nov. 4. However, before that, EOG got a big boost from Citigroup. The investment bank assigned the company a ‘Buy’ rating, and hiked its target price on the stock to $150 per share from $139 on Oct. 25.
Chevron (NYSE:CVX) is one of the best oil stocks to buy in the current oil boom. Its deep pockets allow it to take full advantage of new opportunities. At the same time, its technological know-how gives it a significant edge in developing and exploring unconventional reserves.
Furthermore, Chevron’s commitment to safe and environmentally responsible operations has made it a trusted name with investors worldwide. With all these factors working in its favor, Chevron is well-positioned to reap the benefits of the current oil boom and continue delivering solid returns for years to come. So if you’re looking for a great stock in this booming sector, consider putting your money into Chevron today.
Recently, the company reported third-quarter earnings and hit the ball out of the park. Revenue jumped 49.1% at $66.6 billion, leading to an EPS of $5.56 per share, handily beating analyst estimates.
The healthy results will help Chevron maintain its robust dividend payout. Chevron was able to increase its dividend for years in a row. With its 35-year streak, it is classified as a Dividend Aristocrat – which isn’t easy in the oil industry, where the recent downturn has meant many companies are cutting their dividends.
ExxonMobil (NYSE:XOM) has had an outstanding earnings year, with its third-quarter results breaking several company records. These impressive results are a testament to ExxonMobil’s long history of success and financial stability, making it one of the top oil stocks to invest in today.
ExxonMobil earned $19.7 billion in the third quarter, a substantial uptick from $17.9 billion in the second quarter and $6.8 billion last year. ExxonMobil is capitalizing on higher natural gas prices while delivering record refining volumes and decreasing costs. Overall, they have offset the slowdown in other offerings by being able to react quickly when markets turn around.
Additionally, ExxonMobil is known for raising its dividend payouts regularly. Its latest increase marked the 40th consecutive year this Dividend Aristocrat boosted its payout. On average, the dividend has grown at an average annual rate of 5.9% during the 40 years. With so many advantages working in ExxonMobil’s favor, now is a great time to buy shares in this stellar company.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.