Where to Find a Bevy of Dividend-Stock Opportunities
The major integrated oil group includes many undervalued, stable dividend stocks. Here are our favorites.
Allen Good: We think the major integrated oil group offers a bevy of opportunities for dividend-focused investors. Currently yielding anywhere from 4% to 6.5%, the group is largely undervalued based off our assumptions. At those dividend levels, they are trading at historically high levels compared to decades ago, when they traditionally yielded anywhere from 3% to 4%. However, we do not see dividends at risk.
Subsequent to the collapse in oil prices in 2014, all these firms have done significant work in improving their operating and capital cost structure. So, now the dividends are largely safe down to oil prices are $50. Given our long-term assumption around $60 per barrel oil, we think dividends are largely safe as well.