Energy Stocks: Volatility Next to Clean Energy Investments

Energy stocks exhibit volatility, influenced by commodity prices and shifts toward clean energy. TotalEnergies and Enbridge are proposed as attractive long-term investments. Investors should weigh these factors before buying.

Date: 27-01-2025

AI Rating: 7

Earnings and Long-term Trends
The report emphasizes that energy stocks are subject to volatility, influenced by commodity prices and a transition towards clean energy. Notably, TotalEnergies has recorded a 20% year-over-year growth in clean energy business during the first nine months of 2024, which now constitutes 10% of its adjusted net operating income. The company has also managed to maintain its dividend, unlike peers BP and Shell, which may reflect positively on investor sentiment.
Investment Options
TotalEnergies and Enbridge are highlighted as appealing long-term investments. Enbridge also has a focus on diversifying away from oil, contributing to its cash flow stability with a consistent 6% dividend yield. These attributes could appeal to long-term dividend investors looking for reliable income streams amid market fluctuations.
Based on the report's analysis, we can rate the potential impact of the mentioned metrics:
- **TotalEnergies**: 20% growth in clean energy business indicates strong long-term potential. Rating: 8
- **Enbridge**: Consistent dividend yield and efforts to diversify are also positive indicators. Rating: 7
Overall, the report presents a cautious yet optimistic narrative about energy stocks, advocating for a long-term investment strategy.

Stocks: TTE ENB