5 Safe Oil Yields Up to 8.5% (With Stocks That May Spike, Too)
Brett Owens, Chief Investment StrategistUpdated: September 20, 2019
Energy stocks are en fuego again after a drone strike on a Saudi oil facility. We’re going to (as usual) skip the geopolitical talk and discuss oil dividends that will benefit from this disruption.
While “buy and hope” investors ponder basic ways to play the spike, you and I know that about half of energy returns come from payouts. Check out the orange line below, the total return of a popular energy index with dividends. It’s nearly double what the stock prices themselves returned:
The Real Key to Oil Riches? Dividends.
No dividend is guaranteed forever. But broadly speaking, income has been a far more reliable source of energy-sector returns than price performance, making up nearly half of energy’s total returns since late 1998.… Read more