Why Energy Stocks Are The Ultimate Undervalued Dividend Play Right Now

Sep. 18, 2024 7:30 AM ETCNQ, CNQ:CA, CVX, DVN, FANG, LB, OXY, TPL, VNOM, XLE, XOM36 Comments
(18min)

Summary

  • U.S. oil production has surged since 2008, making the country a top energy producer. Political shifts could affect future output, but growth is likely to slow.
  • Producers now prioritize profitability over expansion, reducing CapEx and focusing on free cash flow, making supply growth slower but more sustainable.
  • Energy stocks are undervalued with strong dividend yields. Despite weak oil prices, the long-term fundamentals of these companies remain very attractive.
  • With low valuations, high yields, and robust demand, energy equities present a strong buying opportunity. I’m using market weakness to build my position.
  • Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More »
Dollar and a crude oil rig

Stadtratte

Introduction

"Drill, Baby, Drill"

I don't know about you, but I had no idea where this slogan came from.

As it turns out, the slogan was used at the 2008 Republication National Convention ("NRC") by Michael Steele, who was the Lieutenant Governor of Maryland. He

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This article was written by

Leo Nelissen profile picture
34.95K Followers

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of CNQ, TPL, LB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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SymbolLast Price% Chg
CNQ--
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CNQ:CA--
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CVX--
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DVN--
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FANG--
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