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Despite the virus in the background, the energy sector seems attractive and worth the investment. Improving the operating environment, increasing economic activity, and achieving higher prices indicate that energy companies provide strong financial and operational performance and support the rise in stock prices.
Let’s take a look at three stocks in the energy sector that may exceed the benchmark index because of the good macro outlook. Focus on energy stocks that are priced less than $ 50.
Due to volume improvement, increased demand, and rising crude oil prices Suncor Energy (TSX: SU)(NYSE: SU) In stock Solid betting For investors to play a recovery in the energy sector. Positive trends in the industry and soaring oil prices can boost the flow of money from businesses and boost stock prices.
Meanwhile, its integrated assets, increased production, increased utilization, and favorable revenue structure provide a solid foundation for growth. In addition, strategic initiatives such as reduced operating costs and debt can generate strong revenue in the coming years.
Thanks to its solid cash flow generation capabilities, Suncor may continue to pay regular dividends and boost shareholder returns through repurchases. Suncor currently offers a dividend yield of 2.9%.
Next is the stock of the energy infrastructure company Penbina pipeline (TSX: PPL)(NYSE: PBA).. Penvina shares, which trade for less than $ 50, have recently witnessed strong buys due to a recovery in demand and rising average commodity prices. I think the momentum will continue due to strong industry trends.
We believe that increased Pembina trading volumes, increased price realization, and operational efficiency are likely to drive Pembina’s finances and support future cash flows. Meanwhile, Penvina’s highly scaled and diversified asset base, new growth projects, and strong backlog are on track for growth.
In particular, the Penvina Pipeline consistently provides shareholders with monthly dividends and currently offers an excellent dividend yield of 6.1%. In addition, we have raised our annual dividend by about 5% over the last 10 years. In the future, we expect the contract framework to promote fee-based distributable cash flow. Dividend payment is safe Sustainable in the long run.
Canada’s natural resources
Share Canada’s natural resources (TSX: CNQ)(NYSE: CNQ) It has risen by more than 133% in a year, thanks to soaring commodity prices due to the resumption of the economy. Meanwhile, it rewarded shareholders with an attractive quarterly dividend. We are currently paying a quarterly dividend of $ 0.47 per share, which is equivalent to a sound dividend yield of approximately 3.8%.
I expect higher natural gas production and higher average prices to continue to boost finances and thus inventories. On the other hand, its solid business model and opportunistic acquisitions have the potential to support its growth.
Canadian Natural Resources has a solid balance sheet and is generating solid cash flow. In addition, the focus on debt reduction is a precursor to growth. In particular, the company is encouraging it to raise its capital budget for 2021 and invest in future growth opportunities.
Three Under $ 50 TSX Energy Stocks to Buy Today
https://www.fool.ca/2021/10/11/3-under-50-tsx-energy-stocks-to-buy-today/ Three Under $ 50 TSX Energy Stocks to Buy Today