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Why Dividend Investors Should Look To Oil Stocks For Big Yields: (XLE)

TedTed
in Fund Discussions
FYI: Energy stocks aren’t necessarily the first place income investors look for yields.

Tethered to commodity prices and the vagaries of geopolitics, the sector can be volatile. The Energy Select Sector SPDR Fund (ticker: XLE) has gained about 11% in 2019, but has a five-year annual return of minus 2.75%, compared with 10.6% for the S&P 500.
Regards,
Ted
https://www.barrons.com/articles/oil-stocks-dividends-yields-51550094836?refsec=income-investing

Comments

  • Old_Skeet
    edited February 2019
    Within equities Old_Skeet holds about 9% in energy while the S&P 500 Index holds about 5%. One of the reasons for my overweight in the sector is because a good number of the energy related companies are fairly good dividend payers. Plus, energy has been a fairly beaten up sector over the past five years. My thinking is that it is a good value play and I will get paid while waiting for it to finds some legs. Thus far and year-to-date I am finding that energy (XLE) is the second best performing major sector within the S&P 500 Index with a return of 13.46% while over the past five years it has had a loss of about 25%.

    And, if this dog (XLE) can continue to hunt ... Well, I've got me a winner winner chicken dinner!
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