Oil

Oil: WTI (US$55.91, -3.4%) and Brent (US$61.06, -1.29%) extended their downward carnage following OPEC’s reiteration that it will maintain production output. One article is making headlines, where investors are advised to pick up four oil stocks, on the premise of attractive yields. Investment Quality Trends recommend Chevron (CVX), ConocoPhillips (COP), ExxonMobil (XOM), Suncor Energy (SU), all listed on the NYSE. On average, these are yielding 3.93%, relative to the 10Y US Treasury at 2.11%. These oil players fit the following bill: • Increased dividend at least 5 times over the past 12 years • S&P Quality Ranking in the “A” category • At least 80 institutional investors • Paid dividends for at least 25 years straight • Produced higher EPS in the past 7 out of 12 years. On fears that oil prices could go lower and dampen dividend prospects, Investment Quality Trends advises that these four majors continued to pay dividends in 2008-09 when oil prices fell to the high $30s.