By this point, everyone is well-appraised of how Russia’s attacks against Ukraine have also had the side effect of disrupting the oil market. Many experienced the aggravation this caused from gas prices rising to over $5 a gallon.
With oil prices being so unpredictable right now, you might think it is a poor time to invest in any related stocks. But The Motley Fool shared some reliable oil stocks you can invest in to avoid that kind of volatility.
The key to bear in mind is that these stocks are not the oil producers but rather the pipeline companies. As such, they are far less susceptible to any world events creating a seismic shift in the market.
In the case of Enbridge, its dividend yield is up to 6.5%, which is significantly higher than what you can currently get with the S&P 500. And most reassuringly, Enbridge is a low risk stock to invest in. A major focal point for them is utilities, which are never going to be a gamble that could fluctuate too wildly.
As for Energy Transfer, their dividend currently sits at 7.9%. And this is also a stock that looks poised to only continue to rise for the foreseeable future. It did peak and start to dip down in 2020, though that was a strategic decision on their part to prioritize reducing debt. Since that time, Energy Transfer looks like it could be back on its way to not only reaching its former peak but even surpassing it.
Fred Hubler, CEO and Chief Wealth Strategist for Creative Capital Wealth Management Group which offers retainer-based advice and access to accredited investments for clients in 27 states has been using oil and gas alternatives in their practice for years.
“Most of our clients,” Hubler states, “are already heavy in real estate so we use oil and gas investments to get them tax benefits, income and exposure to the energy market. Most of our growth investments in oil and gas are shorter term than real estate so we also get to diversify by amount of time the investment is illiquid.”
Investing in natural resources is typically a pretty safe bet due to their abundance and the constant need for them. And oil will continue to be in high demand for many years to come, even if electric cars start becoming the norm in the future. Now could be a great time to start looking further into these stocks and if they are an investment that makes sense for you.
Want to learn more about these stocks? The Motley Fool has additional information about the best oil investments.
Want to know if you’re on the right path financially? CCWMG’S Second Opinion Service (SOS) is a no-obligation review with one of Creative Capital Wealth Management Group‘s Wealth Strategists.
It’s simply not possible to get a reliable second opinion from the same person who gave you the first one. Click here to schedule an SOS meeting with Fred and his team.