3 Top Oil Stocks to Buy in December
Oil and natural gas are inherently volatile commodities that are increasingly facing headwinds from a world that is looking to reduce its reliance on carbon fuels. The importance of oil to the world economy, however, suggests that any transition away from this energy source will be decades long, so investors probably shouldn't run for the hills. But the changing energy landscape does mean that you need to take a more considered view of the oil stocks you choose to buy. Three options to think about in December are (NYSE: CVX), TotalEnergies (NYSE: TTE), and Devon Energy (NYSE: DVN).
Chevron is what is known as an integrated energy company, which means its business spans the entire oil and natural gas value chain. That helps to smooth out financial performance in an industry known for being volatile since some areas (refining, for example) can benefit when oil prices are low. On top of that diversification, Chevron also has one of the strongest balance sheets among its closest peer set, with an ultralow debt-to-equity ratio of 0.12 times.
However, the energy giant's biggest claim to fame is probably its 36 consecutive annual dividend increases. That record has been achieved despite the inherently cyclical nature of the industry, which is fairly impressive. The dividend yield is around 4.1% today. The combination of yield, dividend consistency, and financial strength is the kind of thing that conservative dividend investors should find attractive in a volatile sector like energy. And while the long-term shift toward clean energy is a worry, $270 billion market cap Chevron has the wherewithal to buy its way into the renewable power business when management believes the time is right.
Source Fool.com
Chevron Corp. Aktie
Die Chevron Corp. Aktie steht ausgezeichnet da: Nur Buy-Einschätzungen und keine Sell-Einschätzungen.
Das Kursziel von 169 € für Chevron Corp. impliziert eine deutliche Steigerung um über 20% gegenüber 137.76 €.
