When investing your money in the stock market, a lot of prior discussion and research is important. Since it is not an easy gamble, finding a deal which suits your budget and brings appropriate returns is very important. In addition to this, you must also know the pros and cons of each option so as to make the best decision. In order to help you choose the highest yielding stocks, below is a list of several oil stocks which have showed continuous growth and are shining in the stock market like no other. Let’s begin:
The company is currently in the process of a major restructuring which is the result of a disaster that occurred at the Deep Water Horizon Rig in the Gulf of Mexico. BP, right now is shedding its substantial assets which range from Gulf of Mexico to Russia. Despite of huge settlements happening all over the place, BP has proved to be successful in maintaining a balance sheet which is strong, competent and makes the company one of the highest yielding stock. The strategy followed by the company focuses on developing assets that are higher margined. This is what makes BP earn a respectable position for itself in the list of successful stocks.
Based on reserves, Chevron is known to be the fourth largest oil company in the world. The company’s production visibility is considered to be excellent and therefore Chevron’s cash flow is expected to remain strong and consistent in the near future. The company’s balance sheet is outstanding and has no net debt. Although the company has traded 52-week high, the valuation of the stock is still compelling and worth going after. The company has a dividend yield of 3.2% with the forward P/E ratio standing at 10.
The company is known to have streamlined its assets by the help of asset sales in the last decade. This makes Conoco Phillips a pure play exploration company as compared to the other companies which stand in the market. This asset sale done by the company has proved to be very beneficial thereby bringing to the company an opportunity to strengthen its balance sheet. Furthermore, due to this, the management has also been provided with the flexibility to initiate active capital investment program thereby providing some value to shareholders in the form of dividends and share repurchases. Conoco Phillips has a dividend yield that stands at 4.2% and the forward P/E of10.5.
The company was formed as a result of a merger between two companies, namely Exxon and Mobil back in 1999. It is known to be the world’s largest independent energy company with its activities being well diversified in the fields of oil exploration and production. Exxon Mobil is now U.S’s largest producer of natural gas and has left no stone unturned in being a favorite in the eyes of the investors. The company’s bulk of budget is dedicated to building further reserves.
If you are interested in the stock market, choosing one of the above highest yielding stocks can bring huge benefits to you.