Oil stocks—and their fat dividends—are breaking out to new highs.
Question for you. If Fed Chair Jay Powell hadn’t printed a bunch of money over the past 14 months, would energy stocks still be this electric?
Chairman JP Prints Lots of Money
My take? No way. Their recovery would be (much) more muted.
According to the International Energy Agency (IEA)—the best and most unbiased source of industry information I know—world oil demand is projected to hit 96.7 million barrels per day this year.
Meanwhile, global supply is just 93.6 million barrels per day. Production was halted when the world shut down a spring ago. It’s coming back but more slowly than demand.
Drilling a new oil well takes months. Ramping up shale production from that well can take years. But a “stimmy check” can be cashed—and used to fill up an empty gas tank—in a matter of minutes.
So, demand outpaces supply and energy prices rise thanks to the printing press. A 3 million barrel per day shortfall is a big gap to make up. The price of oil is likely to keep climbing until that imbalance is resolved.
The Federal Reserve has “fueled” this supply deficit with its ample liquidity. We income seekers thank our Fed friends for lighting a fire under our favorite energy dividend stocks.
Thank you, specifically, for Contrarian Income Report favorite ONEOK (OKE). This dividend darling has doubled since we added it to our CIR portfolio just 14 months ago:
A Fed-Fueled Dividend Double
And how about Exxon Mobil (XOM)? The company is back in the mainstream news and, when it comes to Exxon, this is usually not a good thing.
Yours truly flipped bullish on Exxon two months ago. Since then, two (or three) “activist” investors won board seats at Exxon. I say “activist” tongue-in-cheek because from the tone of the coverage alone, it sounded like Greenpeace had taken full control of the operation.
In reality, investment firm Engine No. 1 put a former refinery CEO and a renewable fuels manager in the board seats. Hardly the end of Exxon’s oil and gas.
Are the new board members going to see eye to eye with the company’s current leadership? Of course not. But that’s an investing problem for another year.
For now, Exxon shares are going to trade with the price of oil. The trend for Texas Tea is up. Which is why Exxon shares are already up 10% since I recommended them less than two months ago.
Investing in 2021 is easy. The old saying used to be: “Don’t fight the Fed.”
But this Fed isn’t looking to pick a fight! In fact, Jay Powell must be the most docile Fed chief we’ve ever seen. Which means we should simply:
“Buy what the Fed is fueling.”
I’m talking about 7 “Fed-Fueled” stocks to buy immediately. These little-known dividend payers boast rock-steady 8% annual dividends, with much more room to grow.
These payers are benefiting directly from the Fed’s nonstop fuel. Please let me share more information about them before these “printing press beneficiaries” really take off.
7 Sports Betting Stocks That Will Shine Beyond March Madness
One of the many consequences of the novel coronavirus was the shutdown of live sports. For sports-minded individuals, one of the events that were missed the most was the NCAA Basketball Tournament affectionately known as March Madness.
But in addition to missing the entertainment that sports provide, cities and states realized, if they didn’t already, that sports are an economic necessity.
Live sports may also be a key to their post-pandemic future. But this goes beyond hotels and restaurants.
Sports betting has become big business. Currently, 25 states and the District of Columbia have legalized sports betting either by statute or by ballot initiative. That list is likely to grow. Many states face budget deficits and want to legalize sports betting for the revenue that it could receive.
And this is about more than allowing gamblers to place bets via a sportsbook in a casino. The real driver for this is mobile sports betting. According to the American Gaming Association, over 47 million people are expected to place bets during the NCAA basketball tournament, with approximately one-third of those bets (17.8 million) being placed online.
To help you take advantage of this still-emerging trend, we’ve put together this special presentation. Here we’ll highlight seven sports betting stocks that should generate significant revenue during March Madness and beyond.
View the "7 Sports Betting Stocks That Will Shine Beyond March Madness"