There has been a lot of discussion over the investing of oil stocks. I, for one, believe there is great potential in oil stocks but there is a ongoing concern that oil prices will be low for a long time and this means that most investors don’t want to touch oil stocks. Of course, most of these comments are coming from stock traders. They want to get in and out when the market news comes out. Personally, I don’t have the time nor the discipline to keep up with all the market hoopla (trends), up and down action of the day, and look at these stocks minute after minute.
As an investor, there is great potential in oil stocks. First, you get a nice dividend. BP is giving a dividend at 5.80% and COP is giving a dividend of 4.30%. This means while you wait for the stock to appreciate you collect a nice premium. I don’t know about you but oil is necessary and it will be necessary for a long time. These two companies also follow a strategy called Plan B. This means that they are strategizing their portfolio in the belief that oil prices will not rise soon. Of course, this is a more conservative strategy than the other oil companies but its safer, less risky, and you are still collecting a nice dividend.
I recommend taking a look at both BP and COP as I own them and I will hold them for the long term!