This energy company is trading at a discount, thanks to low oil prices. Now at an attractive entry point, the shares also pay a high yield.
Conoco-Phillips (COP)
from Global Dividend Investor
Conoco-Phillips (COP) remains our favorite choice in the embattled energy sector, based on its attractive dividend yield, high-quality well-diversified assets and strong balance sheet.
We expect further weakness in oil prices through the summer with crude possibly retesting $40/bbl and gradually rising over the next few years into a trading range between $65 and $80.
The large, well-run, integrated energy companies should come out on top in the next few years after shaking out the thinly financed speculative newcomers. Conoco yields 4.7% at its recent price and the dividend looks perfectly safe.
Moreover, the call premiums on the stock are extremely attractive, if you’re comfortable operating in that area to add to your income. Conoco-Phillips is a buy up to $68. We recommend it for patient long-term investors and income investors.
Jack Adamo, Global Dividend Investor, www.globaldividendinvestor.com, July 7, 2015