Arguably, the energy sector has been one of the biggest roller coasters in the market over the last decade or so. Oil prices have continued to be volatile since 2014 when the world’s supply/demand balance became out of whack. The COVID-19 global pandemic didn’t help on that front either..Stay-at-home orders, quarantines, etc., killed global demand for oil, natural gas and petrochemicals. It also killed shares of stocks in the oil patch and their dividends.
The question now is what does the future hold? The answer may be a bit more variable.
As the pandemic wanes and demand/supplies move back into more of a steady order, energy stocks are waking up from their slumber. However, for investors, particularly dividend seekers, the energy patch may look a bit different with regards to steadfast income. Variable payments are here to stay.
Find more about energy stocks here.
