Ukraine Crisis Shows Enduring Value o...
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Mar
13
Tim Lambert
Ukraine Crisis Shows Enduring Value of Oil Stocks
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Even though growth in China, the world’s largest energy user, is down, the share prices for oil stocks is up.  ExxonMobil (NYSE: XOM), the world’s biggest, has risen by more than 5 percent for the last week of market action.  Royal Dutch Shell (NYSE: RDS-B), the second largest, has jumped nearly 8 percent for that time period.  BP PLC (NYSE: BP), Europe’s second biggest, has put in a strong performance in recent market action, too.  Small cap firms like Mondial Ventures (OTC: MNVN), Octagon 8 (OCT: OCTX), and Americas Petrogas (OTC: APEOF) have also shown promise as growth stocks.

While many other articles on this site have detailed the positive features of oil stocks no matter the size, the crisis in the Ukraine is demonstrating it.

Investors are now looking to oil and natural gas stocks as a safe haven asset.  When there is turmoil in the world, these assets will rise.  The current crisis in Ukraine is certainly show how that works to the advantage of the shareholders of oil stocks.

It is becoming obvious that low interest rates will be around in the years ahead.

That makes oil companies with high dividend yields such as BP PLC, ExxonMobil, and Royal Dutch Shell very attractive for income investors.  At present, the dividend yield of the average member of the Standard & Poor’s 500 Index is just under 2 percent.  For BP and Royal Dutch Shell, it is over well over 4 percent.  ConocoPhillips (NYSE: COP) has a dividend yield over 4 percent, too.

Those factors and more make all oil and natural gas stocks alluring to investors, ranging in size from ExxonMobil to Mondial Ventures.

The price of oil lifts all stocks in the sector.  That is what makes it so appealing to investors.   Whether as an income stock such as an ExxonMobil or BP PLC or growth stock like Mondial Ventures, there is an oil and natural gas stock that works for all investors.

 

 

 



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