Where to Invest in Oil Stocks in November 2023

These three oil stocks have both short- and long-term growth figured out. Make sure to consider them for your watchlist.

Amy Legate-Wolfe ❯

@amylegatewolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest.

Published November 6, 2023 4:50 pm EST

If you’re looking at oil stocks, now isn’t exactly a great time. There has been a major shift away from oil and gas for those looking towards a future investment. What’s more, there continues to be a lot of volatility in the industry, mainly with geopolitical issues as well as ongoing environmental and societal activism.

Yet there are some areas where you can invest in oil stocks and look forward to more gains. And that comes down to one word: diversification. So, let’s look at some oil stocks that have more than oil going for it.

Parkland

Parkland (TSX:PKI) has been one of the biggest winners of 2023 so far. Shares have skyrocketed, and granted much of this comes from the company’s oil and gas sales from its locations. However, those locations also include convenience stores.

That’s where this company gets a lot of its revenue — from those needing to take a stop for gas but also from the retail offerings it has at these locations as well. Should the company eventually shift away from oil and gas, it would simply replace those options with electric chargers for electric vehicles. That makes it a great long-term option for investors today.

Further, Parkland stock offers a 3.23% dividend yield as of writing and trades at a reasonable 16.29 times earnings. And with shares up 66% in the last year, it’s certainly an oil stock to consider.

Enbridge

Enbridge (TSX:ENB) looks like it might finally be a good option for long-term investors. Enbridge stock has been stagnating around the $45 mark for years, as the oil and gas industry slouched from 2018 onwards. The pandemic didn’t help, but Enbridge’s expansion of pipelines certainly hadn’t improved much during this time either.

That’s why it was huge news when Enbridge stock purchased several renewable natural gas facilities for US$1.2 billion. The purchase allows the company to continue within the natural gas industry, of which it’s grown so strong, but also to get into the renewable sector for future growth.

The thing is, we may eventually be shifting away from natural gas, given that it may be renewable but not clean. Still, this is a step in the right direction, especially with a 7.67% dividend yield to consider.

Canadian Utilities

Another area where Canadians may want to consider investing is through utilities. Canadian Utilities (TSX:CU) is, therefore, a strong option. It offers power through natural gas and oil but also through other means of producing power. These other methods may grow in the future, but for now, the company offers stable revenue for the stock and investors.

Moreover, Canadian Utilities has long been a strong and stable stock thanks to its essential status. We need utilities to power our homes, work, stores, everything. Because of this, its revenue remains stable no matter what happens, with long-term contracts on board to boot.

And as a Dividend King, with over 50 consecutive years of dividend increases, you can grab its 5.73% dividend yield and be sure that cash is coming your way.