The pandemic wasn’t an easy time for the energy industry. Global travel bans decreased oil consumption in 2020 by more than 30 million barrels. Oil prices fell below zero for the first time, forcing energy firms to cut spending. In the aftermath of the Russian-Ukrainian conflict, oil prices have risen to their highest in over a decade, prompting several nations to reevaluate their energy needs. Global oil prices increased to over $120 per barrel after the crisis started.
Either way you slice it, the magnitude of the renewable energy sector strongly reveals significant prospects for investors right now. There are an impressive number that have excellent financial track records and high dividend yields, priced at what’s arguably a “discount.” I narrowed what I found down to three I like the most, and I sincerely hope that this is as useful to you as any information can be.
That said, join me while I briefly yet thoroughly examine three stocks from the energy sector that have high dividends and solid fundamentals. Analysts agree that these are no-brainer buys:
Conocophillips (COP)
ConocoPhillips (COP) is a global energy company that finds, produces, distributes and markets crude oil, natural gas, liquefied natural gas (LNG), and natural gas liquids. COP’s primary operations are in shale gas, conventional and tight oil reservoirs, oil sands, heavy oil, LNG, and other functions. COP’s portfolio comprises unconventional plays in North America, conventional asset holdings in Asia, North America, Australia, and Europe, multiple LNG operations, Canadian oil sands assets, and an inventory of conventional and unconventional exploration opportunities. COP was established in 1917 and is based in Houston, TX.
COP has exceeded Wall Street analysts’ quarterly earnings projections for the last four earnings reports. Most recently, COP bested EPS and revenue forecasts by margins of 1.54% and 11.75%, respectively. Forecasts for the current quarter – until COP reports earnings again – show an impressive $19.8 billion in sales, with an EPS of $3.98 per share. COP’s year-over-year numbers are moving upwards in every key category: Revenue – 123.67%; Net Income – 146.05%: EPS – 155.48%; Net Profit Margin – 10.01%. COP currently has a dividend yield of 3.88%, with a quarterly payout of $1.11 per share. The median price goal for COP from the analysts providing 12-month price estimates is 123.50, with a high of 153.00 and a low of 106.00. The price target reflects an increase of 8.03% over recent pricing, and the analysts are very confident with COP’s buy rating.
Pioneer Natural Resources Co (PXD)
Pioneer Natural Resources (PXD) is a privately held oil and gasoline exploration and production business based in the United States. PXD discovers, develops, and manufactures oil, natural gas liquids (NGLs), and gas. PXD’s main area of operation is in the West Texas Midland Basin. Last year, PXD had proven undeveloped reserves of 130 million barrels of oil, 462 billion cubic feet of gas, 92 million barrels of NGLs, and stakes in 11 gas processing units. PXD is located in Irving, Texas, and was created in 1997.
PXD’s current quarter shows us assuring numbers, with sales of $7.1 billion, and a very notable EPS of $8.22 per share – which is pretty rare to see. Regarding PXD’s earnings reports, it has had an impressive run of beating EPS forecasts: going back through the past four quarters, PXD surpassed analysts’ forecasts by 6.51%, 5.59%, 18.48%, and 7.52%, respectively. Just as its peers, PXD shows year-over-year numbers that are not only positive, but are in triple digits. PXD has the most significant dividend yield and payout I’ve seen in some time: A dividend yield of 10.23%, with a quarterly shareholder payout of $6.36 per share. The median price objective for PXD from the analysts providing annual price forecasts is 285.00, with a high of 337.00 and a low of 240.00. The estimate is up 14.64% over current pricing, and PXD’s buy rating is vital.
Devon Energy Corp (DVN)
Devon Energy Corp (DVN) is an independent energy company that primarily explores, develops, and produces natural gas, oil, and NGLS (natural gas liquids) in the U.S. At the last measure, DVN reported a total of 5,134 gross wells. DVN is involved in the development and operation of projects such as the Delaware Basin, Heavy Oil, Eagle Ford, Rockies Oil, “STACK” and Shale. Larry Nichols and John W. Nichols founded DVN in 1971 and is headquartered in Oklahoma City, Oklahoma.
DVN’s success has been easy to spot. It’s name has been getting tossed around lately among economists, and for good reason: it’s track record is impeccable. Currently, DVN shows $4.3 billion in sales, at $2.28 per share. For DVN’s last four consecutive earnings periods, the firm easily beat revenue and EPS forecasts by considerable margins. DVN shows very robust year-over-year numbers in the key areas: Revenue – 78.91%; Net Income – 659.69%; EPS – 671.05%; Net Profit Margin – 321.56%. At this time, DVN has a dividend yield of 6.55%, with a quarterly payout of $1.17 per share. DVN‘s consensus price projection for the next 12 months is 78.00, with a high of 115.00 and a low of 57.90. The median forecast is a 9.55% increase from its previous price, and DVN comes with a nearly uncontested buy rating that should command our attention as prospective investors.
Read Next – Warning: Biden’s Big Blackout is Coming
Jim Rickards here.
I’ve always said…
The only good electric vehicle is a golf cart.
So-called “green” energy is…
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