The World Is In Turmoil – Excellent
Mwahahaha. The world is in disarray thanks to… well let's just say certain parties (cough cough Iran cough) and their… *ahem*… disagreements. This naturally sends oil prices soaring higher than my moon base's launch trajectory. And what does that mean Number Two? That's right more money for *oil companies*. Specifically those generous enough to share their ill gotten gains with shareholders via… dividends. Now I may be evil but I'm also practical. And rich. But I want to be richer – One *million* dollars in fact.
Chord Energy: A Symphony of Dividends
First up on our list of potential investments is Chord Energy (CHRD). Apparently they're practically *gushing* money returning a significant chunk of their free cash flow to shareholders. A 4.2% dividend yield? Not bad. Not bad at all. An analyst named Josh Silverstein – sounds like a Bond villain if you ask me – at UBS even raised his price target. Hmm perhaps he's on to something. Speaking of investments have you heard about Gold Takes a Dip Before Economic Data Release? It might be worth a look too as a way to diversify our portfolio especially when market volatility is high.
Permian Resources: Tapping Into Potential
Next we have Permian Resources (PR). They're sitting pretty in the Permian Basin swimming in oil like Scrooge McDuck in gold coins. A 3.2% dividend yield is nothing to sneeze at especially when analysts are predicting further growth. RBC Capital's Scott Hanold seems particularly bullish praising their operational efficiency. Very well. Perhaps I will dispatch Mini Me to 'investigate' their operations. For purely scientific purposes of course.
EOG Resources: A Giant Awakens
EOG Resources (EOG) is the big daddy of this bunch. They're practically printing money returning *all* of their free cash flow to shareholders. A 3.1% dividend yield might seem modest compared to the others but they make up for it with massive share buybacks. Jefferies analyst Lloyd Byrne seems particularly impressed with their capital efficiency. Perhaps I should hire this Byrne fellow. He seems… competent. And competent henchmen are so hard to find these days.
Analysts and Their Price Targets: A Game of Smoke and Mirrors?
Now these analysts… Silverstein Hanold Byrne… they all seem to know their stuff. They analyze financials predict future growth and slap price targets on these stocks. But let's be honest it's all a bit of a gamble isn't it? 'Throw me a frickin' bone here' I mean who truly knows what the future holds? Still their recommendations can be useful especially when backed by solid research and a proven track record. Which according to TipRanks these analysts have. So I suppose they've earned my begrudging respect. For now.
The Evil Takeaway
So what's the takeaway here? Global unrest and rising oil prices can create opportunities for dividend focused investors. Chord Energy Permian Resources and EOG Resources are all worth considering but remember: do your own research assess your risk tolerance and don't invest more than you can afford to lose. And above all else…trust no one. Especially not me. Mwahahahaha.
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