The Smartest Oil Stocks to Buy With $200 Right Now

Oil is a volatile commodity, a fact that needs to be taken into consideration when buying an oil-related stock. However, there are different ways to view this fact from an investment perspective. Chevron (NYSE: CVX), Devon Energy (NYSE: DVN), and TotalEnergies (NYSE: TTE) offer three very different ways to dip your toes into oil stocks if you have $200, or more, to put to work. Here's a quick look at each one.Chevron is what is known as an integrated energy major. That means it invests in the upstream (oil and natural gas production), midstream (pipeline), and downstream (chemical and refining) segments of the broader energy industry. This diversification helps to even out earnings in what is a very volatile sector because each segment of the industry operates just a little bit differently. For example, when oil prices are low and the upstream business is suffering, the downstream businesses will be benefiting from low input costs.While Chevron's diversification across the energy sector doesn't mitigate the impact that oil price swings have on the top and bottom line, it does soften the swings. That, along with the company's focus on having a strong balance sheet, have helped it survive through industry downturns while continuing to reward investors with dividend increases all along the way. Chevron's dividend has been increased annually for 37 consecutive years, which is pretty incredible given the wild oil price swings that have occurred over that span. If you want a reliable, high-yield energy stock (Chevron's yield is 4% today), Chevron is probably one of the best options out there.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool