He likes this stock. His model price is $140, 14% higher than the current price. The dividend is covered by the earnings. He expects it to rise with the market through year-end, if the market rises. However, he thinks there is better value elsewhere.

COP-N vs. CVX-N.  He prefers COP-N.  It has underperformed.  It is more in the E&P space and did some divestitures recently.  They are in a great spot.  There is nothing wrong with CVX-N but it will underperform.

He would be in a weakened industry group, because if the stock has underperformed along with the whole industry, there is less of a risk that it would be a specific company issue. When the whole industry rebounds, some companies don’t. This is the 4^th largest dividend payer and is globally diversified. He particularly likes some new gas operations they have in Asia, some of the prime property they have in the Permian Basin and some great refining assets in California. They are going to have some new management and are firmly committed to their dividend. Dividend yield of 3.9%. (Analysts’ price target is $119.)

He is looking for market-leading companies that are in sectors out of favour, and either have very strong dividends or some sort of catalyst that will unlock value. This one meets all that criteria. Oil has dropped over $100 a barrel, down to about $26, and then moved up now to just below $50. As a result, companies are still shutting in production as opposed to expanding, until supply/demand come back into sync. This is a great way to play that. No matter what happens, this company is dedicated to holding up their 4% dividend yield. Also, they have already made a lot of investments such as Indonesia, so CapX is going to be further reduced, and will be able to grow their free cash flow going forward. (Analysts’ price target is $126.50.)

(Market Call Minute) Large integrated company paying a nice yield.

He is a big believer in this. Thinks the dividend is sustainable. They have earned 10%, 12%, 8% consistently over time in that range. He thinks a lower return is priced into the stock right now. The lower return they are earning at the moment should rebound in the long run. Feels the dividend is sustainable.

We need to concern ourselves with oil. The stock itself looks good. Chart shows a big volume and a big drop. He would be a seller at this point. The first number you have to worry about is a psychological one of $100. 

A very high quality integrated company. She has always chosen to stay in Canada for energy. This is a very large diversified name, and will be able to withstand the downturn. When times are difficult, they can probably scoop up assets at distressed prices.