3 Energy Stocks to Buy and Hold for the Long Term
Rising oil prices have attracted investors back toward energy stocks. That looks sensible because higher prices generally mean more profits for energy companies. However, the issue is, no one knows where the oil prices may head from here. Saudi Arabia played a key role in stabilizing oil prices by taking a voluntary production cut of 1 million barrels per day recently. The Kingdom's commitment, however, is only for February and March, after which it may resume its production. That may be bearish for oil prices.
Amid such uncertainty, it is best to invest in companies that can do well irrespective of short-term commodity price volatility. Here are three such stocks that are well-placed to thrive in the long run.
Chevron (NYSE: CVX) stock currently offers an attractive dividend yield of 5.4%. The company had a challenging 2020 and reported a loss of $5.5 billion for the year. Excluding the impacts of one-time charges and currency effects, the loss stood at $368 million. That contrasts with earnings of $2.9 billion and adjusted earnings of $11.9 billion in 2019. Low oil and gas prices significantly impacted Chevron's upstream earnings while lower gasoline demand hurt its downstream segment's performance last year.
Source Fool.com