The problem with Citi's note: no timeline. I assume Citi is looking six to twelve months out.
Six-to-twelve months out is a lot different that a 30-year horizon. But for oil to continue to attract investors, they need to increase their dividends significantly. Remember, many of these companies had breakevens at $40, and, yes, I know, inflation has raised their costs, but if they had breakevens at $40, their earnings should be incredible in 2Q, 3Q, and full year. So, we'll see.
In addition, for those fortunate enough a revenue stream for continued investing, plenty of opportunities to by great dividend-paying companies.
But note: has anyone heard anything about windfall profits taxes lately. I can't recall when I last heard calls for such taxes. That silence is deafening. The president cannot increase taxes with an executive order. Only Congress can pass tax legislation. And I don't think Schumer / Pelosi have the votes for any new taxes. Especially with a recession facing investors.
Again, the usual disclaimers apply. This is not an investment site.
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