By: Dividend Sensei
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