3 Top Oil Stocks to Buy in April
There are many, many safer sectors to invest in right now than the oil industry. Yes, the entire stock market is in turmoil due to coronavirus concerns, but companies in this sector are dealing with an oil price collapse on top of the sudden drop in demand for fuel caused by travel restrictions. Oil companies have been slashing dividends right and left, and at least one (Whiting Petroleum) has filed for bankruptcy.
With oil prices so low, independent exploration and production companies (E&Ps) are going to have a tough time, so investing in them right now is not recommended. Oilfield services companies and rig operators are also going to feel the pinch of decreased demand, as numerous producers have announced cuts to their capital budgets. So they're not good candidates either.
If you're really committed to investing in the oil industry right now, your best bet is to go for the strongest dividend-paying companies out there, which have a better chance of weathering the storm intact and rewarding you for your patience into the bargain. That's why this month, I'm recommending Royal Dutch Shell (NYSE: RDS.A)(NYSE: RDS.B), ExxonMobil (NYSE: XOM), and Phillips 66 (NYSE: PSX). Here's why these are the top picks in the sector for April.
Source Fool.com
