Fracking and shale drilling have made the energy sector one of the best places to find returns in the last few years. As we’ve continued to unearth massive amounts of oil & natural gas here in North America, energy stocks continue to outperform.
So far, the energy stocks in the S&P 1500 Index have managed to post a hefty 5% return in April and nearly 6% return since the start of the year. That compares to only a 1% return for the entire S&P Composite 1500. The bulk of that return has come from high-flier smaller independent drillers like Range Resources (RRC).
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-chip energy stocks can provide plenty of stability when balancing them with the faster shale players. Meanwhile, many of these companies trade for relative peanuts, at historically low price-to-earnings ratios and other metrics.
Investors shouldn’t ignore blue-chip energy stocks in their portfolios. Here are four of the best to bet on.