Why It’s Not Too Late To Buy Oil Stocks

Why It’s Not Too Late To Buy Oil Stocks

Working oil pumps against a sunset sky. If you've sat out oil stocks until now, it's easy to think you missed the boat. After all, oil's big run has sent shares of producers (and pipeline operators) soaring. That's meant lower dividend yields—and higher valuations—for folks who decide to tiptoe in now. But there's a way we can "turn back the clock" and squeeze 8. 1%, 8. 7% and even 8. 9% dividends out of energy stocks. (These are the actual yields on three overlooked funds I'll show you in a moment.) Those are the kinds of yields you could only get back in April 2020, in the teeth of the COVID crisis, when oil stocks were on their backs, their depressed prices sending their yields soaring. These days, folks who buy these stocks independently or through an exchange-traded fund (ETF) have to settle for a lot less income. Consider the benchmark ETF for the space, the SPDR Energy Select ETF (XLE), which holds shares of major producers like ExxonMobil XOM (XOM), Chevron CVX (CVX) and ConocoPhillips COP (COP). Back in March 2020, its yield spiked north of 15%! But (no) thanks to the energy rally, it pays just over 3%