Top Oil Shares Worth Investing in with a $200 Budget at Present
Investing in oil stocks can be a rollercoaster ride due to the volatile nature of the commodity. Here are three ways to dip your toes into the oil market with just $200 or more: Chevron, Devon Energy, and TotalEnergies.
- Chevron: The integrated energy giant is a dependable choice for those seeking a high-yield, reliable energy stock. Chevron invests in various segments, including upstream (oil and natural gas production), midstream (pipeline), and downstream (chemical and refining), which helps moderate its earnings swings during volatile oil price periods. With a strong balance sheet and an impressive 37-year-long dividend increase streak, Chevron is an excellent option for investors looking for a safe bet with a 4% yield today.
- Devon Energy: In stark contrast, Devon Energy is all about volatility. This U.S. upstream-focused company specializes in oil and natural gas production in domestic energy basins. With no added businesses to balance out the fluctuation in commodity prices, Devon Energy's financial performance and stock price tend to mirror the energy market's big swings. While it requires a higher risk tolerance, if you're positive about the growth of oil prices, making an educated bet on Devon Energy could yield attractive returns.
- TotalEnergies: For those who'd like to hedge their bets, TotalEnergies is the company to consider. A direct competitor to Chevron, TotalEnergies boasts global diversification across integrated energy giants and generates material exposure to electricity and clean energy. With around 10% of adjusted net operating income from its power division and a continued focus on clean energy, even with a 5.5% dividend yield, TotalEnergies is a wise choice for investors looking for more than just traditional oil.
In conclusion, there's no one-size-fits-all investment strategy in the oil market. Chevron is an ideal option for those seeking a stable, long-term investment with a history of reliable dividends. Devon Energy is for investors who are positive about the growth of oil prices and can handle its volatility. Finally, TotalEnergies appeals to investors who want to mitigate the risks of carbon fuels by investing in clean energy.
Investing in Chevron's stocks can provide a steady income stream due to its diversified operations and strong financials, making it a good choice for those interested in finance and money management.
Devon Energy, known for its oil and natural gas production in domestic energy basins, offers the potential for high returns due to its volatile nature, appealing to investors with a higher risk tolerance and a positive outlook on the oil market.
