My thinking goes even though oil price is dropping at the moment, the demand is still increasing. Most of Oil companies I looked at, even though they dropped 70%+ of their value since 2014, their price stayed consistent for 3 years now with hardly any volatility. Most of them offer a very good dividend.
4 companies I looked at have >13 P/E, very positive ROE & ROI, with 0 debt. Cons being low share price, low market cap and low volume.
$PBT $SJT $MVO $CHKR
You could say well they havent grown for 3 years so its isnt a good long term investment but what if they do grow, due to them being low price share 10$> few cents up is already a big profit.
If they stay same for another year well then dividend will be a nice profit.
If they drop another 70% of their value, havent thought of that to be honest.
But on positive say you invest $1200 into MVO (147 shares) a year from today it stays the same value around 8$, in last 3 years their dividend average is 0.846. Thats 124$, pretty much 10% annual profit on your initial 1200. If stock moves up few cents even better. Of course you could lose everything too, but thats the risk.
Am I thinking this right or am I completely wrong and 10$> stocks are big risk not worth taking especially with oil and rising renewable energies?
Submitted November 25, 2018 at 10:01AM by emptyjarofcookies https://ift.tt/2DWuT4Y
