Energy stocks have rallied lately thanks to the Russia-Ukraine war and the consequent increased uncertainty in the global oil supply. According to what I heard on the news, Russia supplies about 15% of the world’s oil.
Anyone who invested in energy stocks, especially oil and gas producers, are probably sitting in the green. The war between the two countries aren’t likely to resolve soon. So, in the near term, energy stocks could probably go higher. However, the best time to buy any stocks is when no one wanted them.
Sample of energy stock Total Return Level data by YCharts
Sorry, I went off the grid again. Last month, I started taking a post-secondary accounting course at BCIT, which is already enhancing my financial statement reading skills. I’ve been primarily focused on juggling the course and my jobs (mostly writing for Motley Fool Canada and Sure Dividend). And I’ve been enjoying every moment of it! …except I feel bad for not updating this dividend stock focused blog.
So, thank you for your readership! You’re in for a treat! You should consider buying STORE Capital Corp. (NYSE:STOR) for income. It’s a quality net-lease real estate investment trust (REIT) that has pulled back recently, making it reasonably priced for buying again.
About my last article discussing Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) as a high-yield stock, some readers gave feedback about the fact that rising interest rates are negative for utilities like Algonquin that have high debt levels because of the nature of their businesses. Rising interest rates imply that their borrowing costs are going to increase, which can dampen their growth.
In contrast to utilities, banks are expected to benefit from rising interest rates. Currently, the highest-yield Big Six Canadian Bank is Bank of Nova Scotia (TSX:BNS)(NYSE:BNS). It yields 4.3% at writing.
Just like its big Canadian bank peers, BNS stock did not cut its dividend through the last two recessions. It did freeze its dividend periodically (like its peers) because of restrictions from the regulatory body, the Office of the Superintendent of Financial Institutions (OSFI), in Canada.