Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
Oil prices are still hovering around $70 per barrel, down more than 5 per cent year-to-date, as a result of subdued oil demand in Asia, and the outlook for the next few months remains bleak. However, this does not mean that investors should give up investing in oil stocks. In fact, the following two stocks are highly attractive with potential growth and generous dividend.
Regardless of market conditions, oil pipeline stocks tend to be safer than upstream and downstream companies. And one of the reasons Enbridge (TSX:ENB) is safer than its midstream peers is because of the scope of the company’s operations.
Enbridge delivers 30 per cent of Canada’s total onshore crude production, and about two-thirds of Canadian oil and other liquids destined for the U.S. need to be transported through Enbridge’s pipelines. Such large volumes give the company a significant industry advantage. And another thing that sets it apart from other oil stocks is that the company also has significant gas refining and utility operations.
From an investment standpoint, Canadian investors typically view it as a reliable source of dividend income. But now, the growth potential of Enbridge stock is coming into focus as well. Over the past six months, this TSX energy stock is up more than 24 per cent, and that momentum is likely to continue. Investors who buy the stock now can earn an attractive dividend yield of 6.1%.
Clean energy is an area worth considering for investors who want to invest in oil as well as hedge their risk, and TotalEnergies (NYSE: TTE), the French integrated energy giant, is the only energy giant that not only targeted clean energy investments but also achieved the goal.
In the first three quarters of 2024, the company’s integrated power division (which invests in clean energy and electricity) increased its adjusted operating income by 21 per cent compared to 2023. The division’s share of overall adjusted operating income was about 10 per cent, compared to less than 7 per cent for the same period in 2023.
The significant revenue growth can’t be separated from the company’s continued investment in its clean energy division. But there’s another factor worth noting: the clean energy transition at TotalEnergies was accomplished without cutting the dividend.
By contrast, peers like BP and Shell have both cut their dividends on the pretext of their now-launched clean energy transformation programmes. And while both ExxonMobil and Chevron have much better dividend records than TotalEnergies, neither company has yet made a major commitment to clean energy.
TotalEnergies stock currently pays an attractive dividend yield of 5.7%.
