5 Beaten-Down Oil Stocks to Buy for the Dividends

Crude oil’s plunge has continued unchecked thanks to firm supplies and weak demand. Since last summer’s peak, black gold has plunged about 60% to current prices around $45 per barrel. It goes without saying that oil stocks have moved in a similar fashion. The broad sector proxy — the Energy SPDR (XLE) — is off by about a third over the past 52 weeks. That drop in price obviously would appeal to those looking for long-term value stocks to buy, but another group of investors should be licking their lips: income hunters. Many oil stocks — including a number of high-quality names — are increasingly attractive from a dividend perspective thanks to those price drops.

The XLE itself sports a 30-day SEC yield of 3.2%, and that’s after having yielded in the 1.5% to 1.8% range within the past couple of years. That yield certainly beats the pants off 10-year Treasuries and puts oil stocks on par with many more traditional high-yielding sectors that don’t have the same potential for rebound gains. Today, we’ll look at a number of beaten-down oil stocks to buy for their suddenly much more appealing dividends: Exxon Mobil (XOM), Occidental Petroleum (OXY), Murphy Oil (MUR), Kinder Morgan (KMI) and Apache (APA).

Source: InvestorPlace

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