Energy Sector

Here are a few energy options with high dividend returns. The current climate is pushing renewable and “green” energy sources, which adds a good dynamic to the energy industry. Those sources are going to take time to develop and become mainstream. In the meantime, something like this may add a nice dynamic to a portfolio. The 6.5% dividend (which … can always change) may help to reduce yearly inflation losses. Thoughts?

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Great find - really like how they broke out the numbers (haven’t been impressed with a lot of recent articles…).

I think energy prices are going climb because of inflation, although I am hesitant to get too involved in the oil industry giving the coming shift to electric cars will have impacts around the industry. That said, oil isn’t going away, so finding the stocks that are most resistant to car fueling is probably the smart move (i.e. jet fuel, etc.)

Yea, good points. Oil is here to stay for a while. Think defense spending, railroads, trucking, airlines, cruise lines, maritime shipping, and most of the energy sector. During a period of high inflation … people will not be able to afford expensive electric cars (High interest loans coupled with increased car prices). They will probably fall back to buying cheaper gas cars. Also, industry will not be able to afford green energy options and will also fall back on oil to weather the inflation storm. I think that green energy will struggle in a high inflation scenario because the cost of materials for those energy sources are already very expensive and inflation will make that worse. These companies provide a double win … high dividends coupled with some upswing potential.

Solid argument… but also the higher inflation will hit gas prices as well… this making the perceived cost of gas higher than electric. Even if electric cars go up more or the same rate, I think we are finally at a typing point price/performance wise that electric will only grow market share.

That said, your main point about gas being here too stay is 100% on… I wonder what the best play for industry will be, because you have a few ways to attack it:

  • Drillers
  • Refiners
  • Shipping
  • Piping
  • Gas stations/ distribution
  • Oil commodities

Hard to tell which one is the best choice, not to mention that most companies overlap more than one area. What else is on your shortlist?