Now that Hugo Chavez has passed away, people have begun to question the short and middle-term performances of oil prices. As you know, Venezuela is an OPEC member and known for its U.S. unfriendly politics. Although oil prices have shown a little distress shortly after Chavez’s death, things are pretty normal now. There are a few factors that make Venezuela a minor figure in pricing oil. Venezuela’s share of oil export is quite ignorable compared with the major oil exporters of the OPEC. Moreover, after the discovery of great reserves in the U.S., the United States is on its way to be one of the biggest oil producers in the world.
However, there is always good in throwing a few bucks on the oil companies. Even though oil prices have been a pure speculation throughout history, some of these companies offer fat dividends to offset your losses, should any occur. Therefore, I have always favored oil companies. I have looked for the top three oil companies with substantial dividends, and a maximum P/E ratio of 11.3. All of the following companies offered a minimum 4.5% dividend yield and have a minimum market capitalization of $2.5 billion. Data is derived from finviz and Morningstar. While there are lots of electric utilities listed on the market, only the following fit my criteria:
With a history of nearly a century in business, ConocoPhillips is a global company that markets, produces and transports crude oil and oil products. Despite massive efforts, the company has been in decline for some time. ConocoPhillips (NYSE:COP) lost one-fourth of its share price over the last twelve months. The stock is currently trading around $58.40 per share.