New to the Stock Market? 3 Common Mistakes to Avoid as an Energy Investor
With crude oil prices rising to levels not seen in 10 months, energy stocks are witnessing some renewed interest. Fossil fuels are expected to play a key role in the energy mix as the world transitions to renewable energy sources, in turn enabling top oil and gas companies to continue generating value for their shareholders.
Energy stocks could be a good long-term investment if selected judiciously. On the other hand, wrong investments can burn a big hole in your pocket. If you are new to the energy sector, here are three common mistakes to avoid, so that you don't end up losing your hard-earned money.
The lure of high dividend yields is difficult to avoid. Who doesn't like double-digit interest-like steady income? However, history shows that basing decisions solely on highest yields could prove disastrous. Not only do you stand to face a dividend cut, but you may also lose significant invested capital.
Source Fool.com
