Why Oil Stocks Belong In Your Stock Portfolio


Here is a crazy statistic that crossed my desk recently about the performance of the Big Oil supermajors in relation to the S&P 500 over the past twenty years: every single supermajor outperformed “the market” since July 8th, 1993.

Over that time frame, BP returnd 9.6% annually.

Total SA returned 10.9% annually.

Chevron returned 12.7% annually.

Exxon returned 11.8% annually.

Conoco returned 12.0% annually.

Meanwhile, the S&P 500 returned 8.6% annually.

The secret to the success of the big oil companies is that they are able to fire on all cylinders: they pay a healthy dividend, they buy back their own stock, and they put in the needed capital expenditures to fuel future growth. It is a great way to add meaningful diversification to your portfolio because when oil prices rise, most other S&P 500 stocks fall, and vice versa. That is to say, when oil prices are … Read the rest of this article!

Corporate Charitable Giving After A Takeover

George Bunting, Jr. who became the CEO of the Noxell Corporation in 1973, a company founded by his father and primarily known for its sale of Noxzema cream in those blue jars, made a public pronouncement upon gaining his executive powers. He declared that Noxell would join “The Baltimore Five Percent Club”, a business and social group whose executives pledged that 5% of all corporate profits would be donated to support charities in the region.

Bunting’s charitable pledge on behalf of Noxell was about twice the national average. Companies that generated between $10 million and $200 million in annual profits donated almost 2.1% of their annual profits to their respective communities.

This creates a fall-out effect on regions that are regularly susceptible to the loss of leading corporations. For example, in 1980, St. Louis had twenty-thirty corporations that donated a blended average of 1.89% of their profits to local charitable Read the rest of this article!