2 high performance energy actions to buy with $ 1,000 and stay forever

The most important thing for understanding energy stocks is that they can be very volatile. This is inherent in industry, as oil and natural gas are basic products. There is one more factor here, as clean energy is an increasingly important source of power worldwide. High-performance energy stocks are then displayed to buy now and stay in the long term that these two factors take into account.

West Texas Intermediate (WTI) raw price a US nail oil The reference, fell below zero at a time during the worst pandemic of Coronavirus. There were technical reasons for this dramatic and shocking descent, but it emphasizes the real risk when it comes to energy actions.

A couple of years later, WTI quoted in the hands of over $ 100 the barrel. This demonstrates not only the potential in reverse, but also the rapid changes of sentiment that can take place in the industry. Although this particular swing was extreme, the dramatic highs are very common.

Cruw WTI Cruit Point Price — WTI CRU POINT PRICE data for Ycharts.

This is a short -term problem that energy investors have to fight. A long -term tendency is the fact that Cleaning energy It is, slowly, displacing oil and natural gas in the energy sector. It is likely to be a transition for decades, but the world is clearly moving towards cleaner sources of energy. For example, coal has been losing ground in the United States electricity in natural gas, which is a cleaner burner. All the time, solar and wind power has been increased in an incredible clip, although from a small base.

If you are a dividend investor who looks at the energy sector and you want to adopt a purchase and maintenance approach, you must consider these two factors. Total energy (NYSE: TTE) and Enbridge (NYSE: Enb) Make good high -performance investment options.

Totomenergies is one of the largest electric companies on planet Earth. Its portfolio is at the same time geographical and spread throughout the energy sector, from the uphill route (oil production) through the middle flow (pipes) and even the downstream path (chemicals and perfection). This diversification helps to soften the inherent changes of the energy sector, as each segment of the industry works a bit different through the cycle. Add a dividend performance of 5.5% (North -American investors have to pay French taxes, but they can claim a part of the return of April 15) and have a fairly solid investment option in the energy patch.

It is improved, because Totenergies has made an explicit commitment to invest in clean energy. While the companions Bp and Shell They committed the same commitment, cut off their dividends as they announced their plans. TotalEnergies maintained his dividend, specifically because he knew that investors were deeply concerned about the revenue that the actions generated for them.

The Netanergies Net Energy Business, called Integrated Power, grew 20% year -on -year during the first nine months of 2024, and was about 10% of tight net operating income. This is a real commitment that provides a fence for the investors who think in the long term. The best part, perhaps, is that Totenergies is using the benefits of your carbon energy business to expand in the Net Energy Future.

Enbridge is a very different beast. It is one of the largest Midstream companies in North America, which has vital energy infrastructure (such as pipes) that helps to move oil and natural gas worldwide. The rates are largely charged for the use of its assets, which tends to drive to very consistent cash flows over time. This is how it supports its 6% dividend performance and how it has increased its dividend for three decades and count. As for energy actions, this is a very consistent income producer.

What is interesting about Enbridge in the long term is that it seeks to specifically change with the world around it. That is why he has invested in natural gas. This movement has effectively reduced its confidence in oil, which was now reduced to 50% of income before interest, taxes, depreciation and depreciation (EBITDA). That is why it has a small energy business, but increasing and growing. Essentially, like Totenergies, Enbridge uses cash that generates from dirt sources of energy to build its business around cleaner sources of energy. This is exactly the type of thing that a long -term dividend investor would like to happen.

If you consider the current energy sector, you must take into account the volatile nature of energy prices and long -term change towards the net energy that is being specified. TotalEnergies and Enbridge address both things and offer attractive dividend performance as well. If you want to buy and maintain, these are two high -performance energy options to keep in mind right now.

Before buying shares at Enbridge, consider this:

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Reaen Gregg Brewer It has positions in Enbridge and Totenergies. The Motley Fool has positions and recommends Enbridge. The Motley Fool recommends BP. The mold’s fool has a Outreach policy.

2 high performance energy actions to buy with $ 1,000 and stay forever was originally published by Motley Fool

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