Oil stocks might not normally be what you’d consider ideal stocks for retirement. Energy prices are notoriously volatile and cyclical, and those aren’t qualities you usually want to see in a retirement stock. I wouldn’t want the comfort of my golden years to hinge on the success of a wildcat oil driller. Sure, the payoff could be enormous. But you’re just as likely to be left holding the bag.
When considering retirement stocks, there are a few conditions I like to see in place. To start, the company’s revenues should be relatively stable, not swinging wildly with the economic cycle.
Secondly, the company’s product should be future proof, or as close to future proof as you can reasonably get in this day and age. And finally, the stock should ideally pay a consistent dividend. Otherwise, you’re depending on capital gains, which can be fleeting.
So, with all of that as an introduction, let’s take a look at three of the best oil stocks for retirement. None are particularly sexy, but that’s actually a good thing. All are dependable long-term performers I would be comfortable putting in any retirement portfolio. And importantly, none have the “lottery ticket” risk profile you might normally associate with oil stocks.