Solid Income Growth Picks for your Portfolio: HollyFrontier Corp (HFC) and More

Marathon Oil is also firing all cylinders. The company enjoys the highest margins amongst the mentioned peers, and announced that it would be spending $5.2 billion on capital investment and exploration activities in the coming year. Analysts estimate its EPS to expand by 4.9% annually, for the next 5 years.

Conclusion

In my opinion, HollyFrontier makes a good income growth pick, with its upcoming throughput increases, fattening margins and expansion work underway. Talking about Tesoro Corporation, it has been under pressure due to stressed margins, but as its margin condition continues to improve, its share price could increase almost exponentially (due to a higher throughput). But one should also note that its low margins make it more susceptible to losses in cases of disasters or maintenance work. Hence, investors should determine their risk capacity, before going long on this value play.

The article Solid Income Growth Picks for your Portfolio originally appeared on Fool.com and is written by Piyush Arora.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.