Profit From Soaring Oil Prices With These 6+% Yielding Blue-Chips

Profit From Soaring Oil Prices With These 6+% Yielding Blue-Chips

Posted On June 7, 2022 8:48 am

Oil and gas prices are soaring, sending energy stocks up 63% in 2022. Energy is the new tech and tech is the new energy.

While there are several reasons energy prices might rise a bit more in the short term, analysts and futures markets expect crude to get cut in half in the coming years.

Today’s “cheap” oil stocks are actually trading at 18x long-term earnings and are significantly overvalued.

These 6+% yielding blue-chips trading at 8.8X cash flow, 10% historically undervalued, and offer a very safe 7.2% average yield.

Analysts expect 2% higher long-term total returns than the S&P 500 and 1% more than aristocrats.

With the right low-cost ETFs you can turn these high-yield energy blue-chips into a sleep well at night retirement portfolio that could help the average retired couple:

  • generate $1.2 more inflation-adjusted income compared to a 60/40 retirement portfolio over 30 years
  • deliver $2.75 more inflation-adjusted wealth over 30 years
  • turn $510K into almost $5 million adjusted for inflation
  • fell 17% in the Great Recession vs 31% for a 60/40
  • fell 4.7% in the 2022 bear market vs 13% for a 60/40

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About author

Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.

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