Get set for sticker shock at the pump.
Crude oil prices are pushing toward $100 a barrel. All after Russian President Putin ordered troops into Ukraine, raising fears of a massive war.
As noted by Barron’s, “The picture darkened on Monday as Putin recognized two breakaway regions in Eastern Ukraine—already controlled by separatists—and ordered troops into the area. In response, President Joe Biden signed an executive order restricting U.S. business with the breakaway regions, and wider sanctions are expected to follow globally.”
There’s also fear the war could send crude to $130, even $150, near-term. Coupled with tight crude supply with growing demand, and we’re running into a severe problem.
Here’s hoping for the best.
While investors can always pick up oil ETFs, such as SPDR Energy Select Sector ETF (XLE), Invesco DB Oil Fund (DBO), and iShares Global Energy ETF (IXC), take at oil stocks that also pay out healthy dividends. For example, BP PLC (BP) carries a dividend yield of 4.23%.
Exxon Mobil (XOM) carries a dividend yield of 4.65%.
Most recently, “XOM declared a cash dividend of $0.88 per share on the Common Stock, payable on March 10, 2022 to shareholders of record of Common Stock at the close of business on February 10, 2022. This first quarter dividend is at the same level as the dividend paid in the fourth quarter of 2021. Through its dividends, the corporation has shared its success with its shareholders for more than 100 years and has increased its annual dividend payment to shareholders for 39 consecutive years,” as noted by the company.
Williams Companies Inc. (WMB) carries a yield of 5.83%. The company has paid a dividend every quarter since 2974.