Published May 15th, 2011
Dallas Morning News
By: Ed Butowsky
There has been a lot of discussion recently about the “excessive” profits flowing to Big Oil companies. In Fact, recent hearings on Capitol Hill were nothing more than a dog and pony show to discredit these companies. But the hearings actually served to highlight the financial strength of energy companies.
Oil company stocks continue to track higher and make so-called higher highs along the way. This is significant. William J. O’Neil, founder of the business newspaper Investor’s Business Daily, concluded in a famous study that stocks that hit all-time highs tend to hit “higher highs.”
Conversely, stocks that hit all-time lows continue to make lower lows. Currently, oil companies are hitting higher highs, and there are several that are worth owning.
Oil company stocks pay average annual dividends of 3 percent. That and the potential for higher stocks prices are good reasons to buy. At the top of my list would be ConocoPhillips, Exxon Mobile Corp. and Chevron Corp.
Ed Butowsky is the managing partner of Chapwood Investment Management and is an internationally recognized expert in the investment wealth management industry. Ed is also a frequent guest on other networks such as CNN, NBC, ABC, Fox News, Fox Business, and Bloomberg to name a few.
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Tags: capitol hill, chevron, companies, conoco phillips, exxon, gas, margins, market, oil, profits, stock, stocks