hi I'm Jimmy and this video we're gonna walk through my top four energy stocks
that could be a good buy now that oil has crashed and quite frankly oils
become super volatile and difficult to predict so hopefully these four energy
stocks could fit somewhere or some of them could fit somewhere in each of our
individual portfolios ideally getting us closer to our goal of achieving
financial freedom okay so the first energy stock I think that looks
interesting is the Royal Dutch Shell company ticker symbol RDS now they
actually have two different classes of shares Class A and Class B Class B comes
out of London and are probably the best shares to get into especially if we live
here in the US Class A shares are subject to certain Dutch laws that can
quite frankly cause some additional tax consequences so the ticker in the US
would be RDS B might be /B or .B or for in London it's just RDSB okay
now Shell is actually going to report earnings this coming Thursday and these
earnings could be bad so I think we need to be ready for a
potential pullback in the stock but one bright side of world shale is that
thanks to this pullback in the stock they have a trailing 12-month dividend
yield of more than ten percent so they've been paying a quarterly dividend
about ninety four cents per share and when they announced their next imminent
our real question is will it still be ninety four cents and I'm not sure it
will be it probably shouldn't be since we know that their earnings and free
cash flow are going to take a hit perhaps something closer to the seventy
five cent range makes sense although companies often don't want a
lower dividend so they might keep it there if they're able to but either way
I think that they are going to likely remain having a very good dividend over
the long run and this could work out very well for us dividend investors now
from an operational standpoint shell and a lot of the other big players in the
industry should benefit or at least be less hurt by the fact that their
upstream business is likely to take the biggest hit with this pullback in oil
prices while their gas business and their downstream businesses although
they're probably to get hurt some as well they won't get
hurt nearly as bad as our upstream business so the fact that they are
diversified is very helpful and just so we're all on the same page when we talk
about upstream we're referring to companies or the pieces of companies
that explore and drill for oil and gas then midstream are companies that
transport and store commodities and then they have downstream and those are the
companies that are refining and ultimately selling the commodities to
the public or to Airlines or wherever it might be
so clearly the huge drop in oil is going to hurt the companies that drill for oil
the most but many of their other businesses will survive a bit easier
than the pure upstream guys okay now the next energy stock that I think looks
interesting is ConocoPhillips ticker symbol COP as we could see
ConocoPhillips stock has been cut in half since the tail end of last year and
once again this help push there didn't yield towards the 5% range now we switch
over to their dividend chart well now we can see that they drop their dividend
back in 2015 and 2016 back on oil rent ooh trouble back then and I also want to
point out that these dividend charts the ones that I'm using in this video
these are trailing 12-month dividends so the most recent line will that
represents the slightly less than a dollar 50 that they paid out over the
past for dividends so it's sort of a rolling number okay now one of the
things that I like about ConocoPhillips is that they're doing a good
job of cutting their capital expenditures to try to save costs I
think that this is a smart move and should help them do it during these
crazy times with oil and they're not doing any stock buybacks so clearly
that's a smart move right now now it looks like for this company in
particular that they need to get oil to about $30 a share to cover their
operational expenses and about $35 a share to cover their operational
expenses and their dividends purely from free cash flow so our question is where
do we think oil is going to be in the next couple of years if we think it will
get to 30 or 40 dollars a barrel well then it makes sense for
ConocoPhillips - it makes sense for us to add ConocoPhillips to our
portfolio as long-term investors this could the pullback in the stock could be
exactly what we're after okay now let's jump over our next
dividend-paying energy stock next up okay first off I know I'm running
through these companies fairly quickly and some of them probably deserve a
deeper dive so if you have any favorites that you think I should analyze deeper
even if it's not on my top 4 list please let me know in the comments below we'll
see if we could put one of those together ok next up is one of the my
favorite one of the more interesting energy stocks during this time and that
is Cabot Oil and Gas ticker symbol COG now we switch over to COG stock chart
well we may notice that their chart looks significantly different than many
other energy stocks that we may have seen now they only have a dividend yield
of about 2% right now but I also think that they have a chance to continue to
improve that dividend yield is their dividend chart especially if we get
lucky with this and the stock pulls back well that will only improve their
overall dividend yield see Cabot has a relatively strong balance sheet compared
to many of their competitors they have a decent amount of exposure to some
onshore natural gas which hasn't been nearly affected as many of the oil has
been and that should do a good job of continuing to push their revenue at
least in at a reasonable pace compared to the industry and they've done a good
job of lowering their costs so overall I think that they're one of these stronger
energy companies out there hence the reason their stock hasn't roll really
pulled back so I think in the long run cabott could be a company that although
they don't pay a great dividend yield they are they do come with a certain
amount of security that is a little bit away from the current turmoil in the
markets so I think that there's a bit of built-in safety but yeah I got to give
up some dividend yield for that ok now we shift over to a midstream company
that is also yielding in the 10% area now this is enterprise product partners
ticker symbol EPD now we can see an EPD stock chart that their stock has been
hit like many other energy companies over the past few months and that helps
fuel their impressive dividend yield now we can see that their dividend yield has
been gradually rising which is a good thing for dividend investors and I think
that it could keep rising over the long run
in the near term I'm not a harm percent sure I do know that they have multiple
income streams and they have solid credit and liquidity and in the near
term I think that they should do okay they should at least survive through
these turmoil times but in the long run I think it could make sense to pick up
EPD for the dividend yield alone and even if they just kept their dividend
close to the current level it could shake out to be a decent investment a
decent dividend play for anybody looking to expose himself to some energy stocks
now they also report earnings this Thursday so we may get some volatility
around those earnings but I'm looking at all of these companies as potential
long-term investments now if we like dividends but perhaps we don't want to
take a chance with the energy stocks well I actually did a video not too
long ago where I walked through my five favorite dividend stocks or five of my
favorite dividend stocks that could be good for long-term investors if you're
curious perhaps that could be a good next video for you to watch there's a
link right here there's a link in the description below and thank you so much
for sticking with me all the way into the video I really appreciate it thanks
and I'll see you in the next video