• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Oil stock No.1: Phillips 66 (PSX)

Phillips66 is a diversified energy company with four operating segments: Midstream, Chemicals, Refining, and Marketing & Specialties.

Headquartered in Houston, the company has 12 refineries in the U.S. and Europe with a global refining capacity of 2.2 million barrels of crude oil per day. It also markets gasoline, diesel, and aviation fuel through more than 7,500 independently owned outlets in 48 states.

Phillips66 is returning cash to investors. The board has restarted the company’s share repurchase program, which had $2.5 billion remaining under its existing authorization as of Mar. 31.

The company also announced a 5% dividend increase in May. At the current share price, Phillips66 offers an annual dividend yield of 4.7%.

Energy stocks have pulled back over the past month and Phillips66 was caught in the sell-off as well. However, the stock is still up 6% year to date – in stark contrast to the broad market’s double-digit decline.

Wells Fargo analyst Michael Blum sees more upside on the horizon. Blum has an ‘overweight’ rating on Phillips66 and recently raised his price target from $114 to $127 — roughly 58% above where the stock sits today.

Meet Your Retirement Goals Effortlessly

The road to retirement may seem long, but with WiserAdvisor, you can find a trusted partner to guide you every step of the way

WiserAdvisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.

Get Started

Oil stock No.2: TotalEnergies (TTE)

TotalEnergies is an integrated energy company with operations in more than 130 countries around the world. While the company is known for being one of the oil supermajors, it also produces and markets biofuels, natural gas and green gases, renewables, and electricity.

Business has been booming. In Q1, Total Energies generated $63.94 billion of revenue, representing a 65.5% increase year over year. Adjusted net income came in at $9.0 billion, which tripled the $3.0 billion earned in the year-ago period.

TotalEnergies is a French company and its shares are listed on Euronext Paris. However, the company’s American Depositary Receipts (ADRs) trade on the New York Stock Exchange so it’s very convenient for U.S. investors to get a piece of the action.

Analysts are optimistic about what’s in store for the company. Last month, Bernstein analyst Oswald Clint upgraded TotalEnergies from ‘market perform’ to ‘outperform.’ He has set a price target of €70 for the Paris-listed shares — implying a potential upside of 43%.

Sponsored

Follow These Steps if you Want to Retire Early

Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.

Zoe Financial is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

What to Read Next

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.