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Big oil stocks went from borderline uninvestible to intriguing dividend options for value-conscious income investors. In numerous prior pieces , I’ve been urging investors to take on a contrarian position in the big oil stocks while the herd had given up on them in favour of the green energy stocks. “If we are due for a rotation back to value in 2021, oil stocks could be made great again, probably at the expense of the bubbly EV and green energy plays that have seen their valuations swell to absurd heights.” I wrote in a prior piece. “Now, don’t get me wrong. I still believe that green energy is the future and that fossil fuels are in secular decline. That said, the timeline of the transition from fossil fuels to renewables has been greatly exaggerated of late.” At the time, many big oil players had robust operating cash flows, with more than enough resilience to stay solvent in a “lower-for-longer” oil price environment. Still, the secular downtrend of fossil fuels was more than enough of a reason for young investors to stay out of the space. Now that value is making a comeback while growth sours, I think there are […]
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