Weakness in the prices of crude oil and natural gas liquids have ratcheted up the pressure on producers, prompting operators to scale back planned capital expenditures and, in some cases, slash their dividends. But the energy sector still houses some appealing options for income-seeking investors.
Despite unfavorable comparisons to America’s leading shale players, the West’s biggest oil companies remain a foundational holding in any energy portfolio for their time-tested resilience and potential upside from self-help measures.
Initial public offerings of master limited partnerships offer prospective investor a winning combination of growth and income—provided that you pick the right names. Here are two of our favorites to buy now.
Investors shouldn’t listen to claims that the world’s major oil companies have lost their luster. These lumbering giants still have a number of levers they can pull to drive upside--not to mention the resilience and financial firepower to survive the most challenging market conditions.
Our favorite refiner stands to benefit from the growing glut of crude oil on the Gulf Coast, growing international demand for diesel and superior economics to competitors in Asia and Europe. Equally important, this stock complements the Wealth Builders Portfolio’s existing energy holdings.
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