Beruflich Dokumente
Kultur Dokumente
Its no surprise that the current malaise in the energy sector has wreaked havoc
on the various energy stocks. As oil prices have cratered, so have share prices
for the entire sector. However, as theyve fallen, thats opened up plenty of
opportunities for investors looking for bargains.
[1]
Source: Flickr[2]
And investment bank and asset manager BlackRock, Inc. (NYSE:BLK[3]) has
one top-notch suggestion focus on big oil.
According to BlackRocks chief investment strategist Russ Koesterich, big oil
has the goods to keep producing gains for investors in the upcoming months.
Because of their strong balance sheets, high dividends and integrated business
models, big oil has what it takes to survive the current low-price oil
environment.
And now could be the time to buy these energy stocks. Koesterichs research[4]
shows that big oil is trading for just 1.5 times book value, forward price-toearnings multiples that are below the sectors history and an average dividend
yield of 4%.
That makes big oil a great value in todays market especially for investors
looking for bargain-basement dividend stocks.
While Koesterich didnt name names, theres plenty of big oil bargains. Here
are three of the best to buy today.
Big Oil Dividend Stocks To Buy: Royal Dutch Shell plc (ADR) (RDS.A,
RDS.B)
Shell is already a cash flow machine. But the new RDS/BG combo should help
keep that cash flowing and rising for years to come. Those cash flows will
continue to make their way back to investors via hefty dividends.
Based on its proposed $1.88 payout, Shell is yielding a healthy 5.96%. And that
dividend is as good as gold. The big oil stock has paid a dividend constituently
since World War II.
RDS stock can currently be had for a cheap P/E of 13.5.
Big Oil Dividend Stocks To Buy #2: Chevron Corporation (CVX)
Likewise, it recently suspended its lucrative buyback program. While that can
be seen as negative in the short run buybacks instantly boost earnings-pershare it again helps pad its cash hoard. And considering that Chevrons
payout ratio is already only about 42% of its free cash flow, theres plenty of
reasons why that dividend is going to stick around long term.
CVX shares can be had for a dirt-cheap P/E of 11.
Big Oil Dividend Stocks To Buy #3: Total SA (ADR) (TOT)
TOT is one of the few European companies that pays on a quarterly rather
semiannual schedule.