3 Reasons to Embrace Eni SPA
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John Murphy
3 Reasons to Embrace Eni SPA
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ExxonMobil (NYSE: XOM), BP PLC (NYSE: BP), and Chevron (NYSE: CVX), are some of the Big Oil stocks that have been mentioned on this site.

Investors who have bought BP PLC, Chevron, and other BIg Oil Stocks have done well.  ENi Spa (NYSE: E) is an Italian oil economy that is up nearly 18 percent for the last year of market action (chart below.  There are three reasons why Eni SPA should continue to reward long term investors.

Growth for Eni SPA is predicted to increase.

Over the next five years, earnings-per-share are expected to rise by 5.5 percent, according to the consensus of the Wall Street analyst community.  For the last half decade it was a negative 10.10 percent.  That is a very bullish reversal.  Long term shareholders of Eni SPA should benefit from that even more in the years ahead.

Demand for oil and natural gas is expected to continue rising.

The demand for oil and natural gas is expected to rise in the decades ahead.  That will result from Brazil, China, India, and other emerging nations increasing their needs for energy.  Oil and natural gas are the favorites.  Coal is dirty.  Alternative energy is not nearly at the mass scale needed.  As a result, billions joining the consumer class around the globe will turn to oil and and natural gas for their heating and power needs.

Eni SPA pays its shareholders very well to be long term investors.

The dividend yield for ENI SPA is 4.83 percent.  That easily tops those for Chevron and ExxonMobil.  If the earnings rise as projected, it would make sense that the amount of the dividend would increase, too.

Big Oil does not have to be in Texas.

Eni SPA has rewarded those buying into an Italian oil and natural entity.  The analyst community sees stronger growth ahead.  With a robust dividend yield, that should make for a health total return for long term investors.


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