Energy stocks continue to be a fertile hunting ground for investors looking for big returns. For instance, shale superstars like Range Resources (RRC) continue to put up big production gains and profits as they frack their way into America’s shale basins. And at the end of the day, these smaller, independent energy stocks will be the market leaders of the future.
Still, there’s also something to be said about holding steady blue-chip energy stocks in your portfolio, too.
Featuring vast reserves, hefty cash flows and juicy dividend payments, blue chips in the energy sector can provide plenty of stability when balancing them with the faster shale players. Meanwhile, many of these companies can be had for relative peanuts, trading for historically low price-to-earnings ratios and other metrics.
So if you’re looking to add some exposure in energy, definitely fill up on the smaller players … but balance yourself with one or more of these best of the best blue chips: