Author Bio
Reuben Gregg Brewer believes dividends are a window into a company s soul. He tries to invest in good souls.
Despite improving commodity prices, the energy sector remains deeply out of favor. For income investors with a contrarian bent, however, that s a potential buying opportunity. The problem is that there are still very real issues for energy companies to deal with. That s why integrated giant
Chevron (NYSE:CVX) is one of the best options in the space. Here s a few points to back that up.
1. Diversification
There are a multitude of ways to invest in the energy sector, from the upstream (exploration and production) to the downstream (chemicals and refining), and there are different dynamics to each major area. Chevron, one of the world s largest integrated energy companies, has exposure across the value chain, from drilling to transportation (the midstream sector) to processing. That provides balance to its portfolio, since in normal market
Author Bio
Reuben Gregg Brewer believes dividends are a window into a company s soul. He tries to invest in good souls.
The energy sector was teetering in 2020 as a massive demand drop caused by the pandemic response left oil prices languishing. Some energy companies, including
Royal Dutch Shell (NYSE:RDS.B), made huge business shifts, while others, like
Chevron (NYSE:CVX), chose to stay the course. So far, Chevron s approach appears to have been the better option for dividend investors. And that s likely to remain the case for a long time to come.
The big change up
Energy companies had been facing hard times before 2020, with low oil prices and heavy debt loads forcing most drillers to pull back on spending plans. When the pandemic hit things got even worse, with key U.S. oil benchmark West Texas Intermediate crude falling below zero at one point. Think about that for a second drillers were paying customers to take oil off their hands for a brief mo
Author Bio
Reuben Gregg Brewer believes dividends are a window into a company s soul. He tries to invest in good souls.
The last couple of years haven t been great for
Occidental Petroleum (NYSE:OXY). Some of that has to do with the broader energy market, but a good portion was also tied to company-specific decisions. If you are looking at Occidental today as a way to invest in the recovering energy sector, here are some things to consider before jumping aboard.
1. An aggressive acquisition
The troubles that Occidental faced in 2020 were exacerbated by a decision management made in 2019. But there s a bit of backstory here. Energy industry giant