Energy investors have had a lot to cheer about the last couple of years. After being the market’s pariah and left for dead heading into the pandemic, the current round of inflation forces along with demand/supply constraints has made the sector a big winner. Cash flows were back and dividends started to grow.
Be sure to check our Best Energy Dividend Stocks List to explore more options from this sector.
But lately, the energy sector is starting to look at bit more bifurcated. Big oil is winning, while the smaller fires are starting to suffer. Volatility in energy pricing and surging CAPEX is causing a big issue.
For dividend seekers, the mixed message and dwindling variable payouts could mean it’s time to bet on big oil and ignore the rest.