Canadian Oil Stocks

Canadian Oil Stocks

Thinking of investing in oil stocks? Instead of investing in familiar names or oil stocks from Middle East companies, consider investing in Canadian oil stocks.

Canadian oil and gas stocks offer several different ways to invest in this market. You can invest either in oil mutual fund, income trusts or through individual stocks. We will look at each of those in this article.

First, why invest in oil from Canada? Considering we get most of our crude oil from Canada, doesn't it make sense to invest in our own backyard?

You have seen oil companies nationalized by other countries without warning. You have also seen where a dictator has kicked an oil company out of the country. Canada provides a better environment for an investor. You have never seen, or probably ever see something like that happen there.

How to Invest in Canadian oil and gas stocks

There are many ways to get involved in Canadian gas stocks. One way would be to seek out mutual funds that invest in oil stocks from Canada. This will give you a diverse portfolio of stocks for your energy investments.

If you are seeking monthly or quarterly income, you should look into Canadian oil trusts. These are oil and gas stocks that are set up as trusts and pass along most of their income to share holders. Dividend yields can be quite high on these funds. I have seen yields over 14% in some cases. When selecting an oil trust, just don't reach for the highest yielding fund. Investigate to see why it is able to pay such a high dividend. Is it sustainable? You will be able to find several funds that yield in the 3%-6% range.

You could also trade individual oil companies. There are several that trade on the Toronto Exchange and also on the NYSE. A few of the larger oil companies you could look at are Crescent Point Energy, Imperial Oil and one of the better known ones here in the states is Suncor.

If you're looking to add to your energy portfolio, take a look at Canadian oil stocks.

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