5 Best Oil Investments Now In 2022 (9% Yield)
how's it going today guys welcome back to the channel i hope you're having an awesome day so far so in this video today we're going to be talking about my top oil investments for 2022. so we all know that inflation is currently at a 40-year high which is causing prices to skyrocket everywhere now one of the areas that has been hit the hardest is gas prices which are now currently at a seven year high now that might not sound that crazy compared to inflation being at a 40-year high but when you consider that oil prices were just at a 20-year low in the spring of 2020 that is a pretty quick turnaround now in addition to this right now tensions with russia are putting even further pressure on oil prices due to sanctions that are being put in place for example germany has halted a major russian gas pipeline called nordstream 2 and that has put even more upward pressure on oil prices now while i don't personally believe in the long-term future of fossil fuels i do think that in the short term this trend of climbing commodities prices is going to continue so as a result of this and many other things going on right now in the overall economy a lot of investors are looking to get exposure to the oil business so we're going to be covering a few different ways to invest in oil as well as an oil investment i have made myself now real quick guys i did want to mention as well that at the end of this video i'm going to be doing a full update on my m1 finance portfolio as usual for that monthly update also i just have to make a real quick disclaimer here that i am not a financial advisor and you should always do your own research and due diligence on any stocks etc mentioned above and beyond this video before making any investment decisions that being said let's jump into number one and talk about my personal oil investment in a master limited partnership called global partners or glp so as mentioned earlier i'm really not a huge fan of the oil and gas industry i've actually never owned any oil and gas stocks outside of this limited partnership or mlp which i started buying shares of over the summer so this company is organized as an mlp which is very common among energy investments and this is because they are involved heavily in the petroleum business so as a result um you do have that tax favorable treatment here of this being a limited partnership which is only available to certain companies in the energy sector however what i like about global partners is that you also get exposure to the convenience store business so global partners has a lot of gasoline and petroleum assets including 21 gas terminals owned by that company they're also one of the largest branded and unbranded gas suppliers in the northeast which is where i grew up uh now i'm based out of miami but i still you know go up to new york quite a bit so that's sort of how i found out about this particular company and they also have nearly 300 company-owned convenience stores including the new all-town fresh brand which is the reason that i personally decided to initially invest in that company because i just really like the convenience store aspect of these new all-town fresh stores and i think they're going to do really well in my particular area now above and beyond that being a limited partnership you can expect a higher than average dividend yield but when i first started buying this stock it was actually over a 10 yield now it's currently sitting at roughly 9.2 and i just got my second or third dividend from them i don't know which one it is yet but i'm going to show you at the end of this video but it was another dividend payment for over 1 000 which is pretty mind-blowing also guys before we get into number two i just wanted to mention that i also have this particular video available in article format over on my website that's one of the things i've been trying to do is take more advantage of that over there so if you want to read along as uh you're watching this video here with the information and notes from this video uh be sure to check out in the description below the link to my article on my website for my top five oil investments right now number two on the list here is none other than exxon mobil trading under the symbol xom so this is pretty much the most well-known oil and gas company out there and it's also the largest direct descendant of rockefeller's standard oil company so a few more pointers here on exxon mobil they have an ambitious goal of having net zero emissions by the year 2050. in addition exxon mobil is involved with the exploration development and distribution of oil gas and other petroleum products this company does as a result have major exposure to prices for energy commodities which can be extremely volatile that's one of the reasons why you don't see a company like exxon mobil on the dividend aristocrat list and that's because of the fact that the dividends have had to fluctuate based on those underlying commodity prices fluctuating too but we are talking about how to get very direct exposure to oil prices and one of the very best ways to do that is through exxon mobil because they have so much exposure to that as their business that they operate now another thing you're going to run into with oil and gas investments is they typically have above average dividend yields and so right now exxon mobil is paying a 4.5 percent yield so you are gonna have to make a decision about whether or not you want to reinvest those dividends allowing you to earn that compound interest and it's probably largely based on how long you plan on holding on to this oil investment now if you do want to reinvest those dividends you can do that over on m1 finance which is the main brokerage platform i use so you could invest in oil stocks or portfolio of them and then have those dividends automatically reinvested into your portfolio back into more shares of the stocks that you own if you wanted to do that okay guys so coming in at number three on the list is another very well-known gas company known as bp now bp or british petroleum is a global gas company based out of london england however one of the key differences between bp and other large gas companies out there is that bp is very largely focused on renewable energies probably more so than the largest gas companies out there today they have an ambitious goal of becoming a global leader in renewables just as they have with oil over the last few decades so all companies in general all oil companies have a focus in some way on renewable energies because of the fact that the future of fossil fuels is largely uncertain however bp does seem to have the biggest focus on this transition overall so if you're looking for you know a future proof company potentially bp has more of that you know on the front burner focus getting into the renewable energies now in addition this company also owns a portfolio of different gas stations as well as other gas assets such as terminals and they currently pay a dividend yield of 4.3 percent which is pretty standard among these gas stocks right now now if you're looking to do a short-term trade of oil whether you're looking to do options or anything like that do keep in mind that's going to bring more risk into your portfolio but i did want to give you guys an option there if you are looking to do something very short term and one of the most popular options is number four here which is the united states oil fund lp trading under uso now uso almost exclusively invests in oil futures contracts and these are common with commodities out there such as oil and basically with a futures contract you have two parties that are going to be agreeing to buy or sell a certain commodity at a predetermined price at a set time in the future now that's all fine and dandy but you do have to keep in mind that when you invest in futures you're holding a contract for the future delivery of oil in this case not an actual underlying asset so that does bring in a lot of risk to your portfolio there's also costs associated with futures and other derivatives so funds like this do have a decay that you should be familiar with so funds like uso here are not meant for long-term oil investment it's really primarily meant to basically trade short term based on the underlying prices of oil so with uso united states oil fund here the goal of this fund is to track west texas intermediate crude as closely as possible now the goal of this fund is to follow oil as closely as possible through the use of investments such as futures contracts as well as other financial contracts and swaps and different things like that that are very complicated so again this should only be used for short-term trades based on oil this is not a long-term investment you don't own pieces of a company you don't own any equity here you're merely investing in a fund here or partnership that then invests in futures contracts because of that it is a non-yield bearing investment it does not pay a dividend so all of those factors should be considered and then fifth and finally on the list here if you don't want to have individual stock exposure but you also don't want to have you know exposure to futures i did want to mention an etf in the energy sector which is going to give you broad exposure to countless different oil and gas in energy companies and the one on our list here is the ishares global energy etf trading under ixc so inflation is pushing up the cost of energy across the board not just oil we're also seeing this with natural gas prices and a lot of other commodities so another option you have for oil investment is investing in an energy etf which is going to own dozens of different stocks or more giving you diversification across multiple companies because you could invest in a particular oil and gas stock and even if the prices of oil and gas stock skyrocket if that company isn't doing well you know you could actually have that investment perform poorly whereas if you were in an etf even if that one particular stock wasn't doing well you own many different other ones to offset it so ixc gives investors exposure to companies that produce and distribute oil and gas and there are actually 62 individual holdings within the fund including companies like exxon mobil chevron shell and more now do keep in mind this is an etf so they are going to collect a management fee which is 0.43 annually and the current dividend
yield for this fund is sitting at 4.2 percent okay guys so that's gonna wrap up my picks here for oil and gas investments now we're going to jump into my computer for my monthly update of my m1 finance stock portfolio okay guys so here we are inside of my m1 finance stock portfolio and we're pretty much at a similar value to where we have been over the last couple of months hovering between 90k to around 100k so as you can see i still have the same four positions here which is global partners genius brands uh dave and busters and then a little bit of verizon now i did end up earning another sizable dividend uh this month from global partners so let's go ahead and cover that now so this dividend here ended up getting paid out in two separate dividends one in the amount of 492.30 and the other the same day in the amount of 726.57
so that's somewhere around 1200 for that quarterly dividend and this is actually the third dividend i've earned from glp which is pretty awesome so going back from this one uh the earlier one i earned from them down here was 1198.04 and then if we go to the other page here we can see the very first dividend i earned from them was 943.62 so it's also awesome to be seeing those dividends increasing uh quarter over corner and i've now made almost well actually probably over three thousand dollars in dividends over the last three quarters from my roughly 50k investment into global partners i also earned a small dividend here in february from verizon in the amount of 38.83 and then of course genius brands is my more speculative small cap investment so they do not pay a dividend and then dave and busters in addition they also do not pay a dividend now i was up more on global partners last month based on where the market was at but i am still up uh with an unrealized gain here of about sixteen hundred dollars on glp besides that um dave and busters has actually recovered quite nicely here and i'm only actually down 2.8 percent i am down about 7 in
verizon and then of course in my speculative investment here with genius brands i am down roughly 50 on that in the short term now in terms of what's going on here with genius brands it's pretty much what's going on with small cap stocks across the board and that is that they are just getting absolutely shorted like crazy so just to show you guys this i actually have a subscription here to ortex if you're looking to do you know in-depth research on stocks it is probably worth it but you know it's a couple hundred dollars per year but i did want to shout them out here since we are using that service but anyway looking at this here iwm is an etf which is the russell 2000 and this is 2000 companies and it includes obviously a list of a lot of smaller companies in that list being an index with um 2 000 individual stocks now what's crazy about this is with an index fund this is going to be stocks from all different industries across the board but if you look right here you're seeing the current short interest on this which is of course estimated but we are going off of or tax data here is over 40 percent right now which is absolutely insane so 40 of the shares that trade of this of the free float are apparently shorted right now of just an index fund which is literally small cap and mid cap stocks across the board so i honestly think that a lot of what we're seeing here with these small cap stocks is a result of this insane amount of shorting and i don't know what the reason is behind having so much short interest on these small cap stocks but there is a lot of hedging going on in the market but at some point some of the short interest does have to come off whether it's a result of you know prices moving higher or prices moving lower which could affect the collateral that they have but anyways we have been seeing just crazy short interest among small caps i mean literally pick any small company out there yourself and look it up and i would almost guarantee you it's hard to find a company out there right now you know with a market cap under 10 billion dollars that hasn't been absolutely destroyed in the last couple of months but nonetheless i like genius as a long-term investment guys i'll put my whole report down below my due diligence on the stock it is about 5 000 words but it walks you guys through my whole thesis and why i have over a hundred grand invested and i actually just bought another five thousand dollars worth of shares at the 88 cent range a couple of days ago so i haven't sold any shares i have bought some options and also some more shares at this very low price range currently so just to keep you guys updated on that since i have been getting a lot of questions now another thing i like to pay attention to here is failure 2 delivers here with genius brands and other heavily shorted stocks and this basically has to do with the settlement time for uh shares when they are purchased and sold and brokers actually have you know a set period of time to actually go out and locate shares after they are traded so believe it or not when you actually transact shares in your brokerage you're essentially given an iou initially and then in a usually a three-day window that is exchanged for a legitimate share an ftd or a failure to deliver is when a broker is unable to actually find a share to give to you so as a result an ftd is issued i always pay attention to upticks in ftds and if that corresponds with a price moving downward and what we can see here is that it was pretty quiet after june here where there was a huge increase in ftds which pushed the price down which which does make sense if they were potentially having a huge number of shares that were unable to be located or delivered and then we see down here where the price kept going down even further a huge uptick in the number of ftds so this is just another important metric i'm looking at and if you personally have invested in any stocks lately that have just gone down like crazy i would encourage you to pay attention to ftds and overall short interest on that stock because that may be actually painting a larger picture of what might be going on for that company now in my opinion i see three major catalysts right now for genius brands in the next few months number one is of course the launch of shaq's garage which is going to be their next big show obviously they've already had stan lee's superhero kindergarten which was a pretty big success starring arnold schwarzenegger but shaquille o'neal i think is still far more relevant with younger people today and i think this show might actually do quite a bit better uh so this is coming out in spring of 2022 so i am super excited about the launch of their next show here shaq's garage and the other thing too that's important is they have their hit show rainbow rangers uh which is now on amazon it's on netflix it's on a ton of different platforms but what a lot of people don't realize is that season three of rainbow rangers is going to be exclusive to cartoon channel at least for a set period of time so anybody who's been watching that show and getting interested in the series is eventually going to have to transition over to the cartoon channel streaming platform in order to access season three so i think that is also a good potential catalyst but that's going to be quite a bit in the future when season three is actually launched so the second catalyst here is excelsior 2022 which is related to stan lee so obviously we mentioned stan lee's superhero kindergarten genius brands through a joint venture with pow does have control of the stanley trademark and one thing that is quite interesting is what was mentioned here in an earlier annual letter from the ceo andy hayward regarding excelsior 2022 and if you look here it basically mentions how there are going to be three major projects they're going to be focusing on initially with their stan lee uh trademark so you can look into this more yourself if you want on the first two but the main one i want to talk about here is excelsior 2022 because i think this is also a huge potential catalyst it says here december 28th 2022 is the date of the stan lee centennial where he will return in a.i artificial intelligence form and activate an embedded world of superheroes to save the earth so i think this could be a pretty big deal and also there was something that people have pointed out in one of the recent cameos of stan lee in one division right here you can see the dates 12 28 22 announcing the centennial so i am definitely looking forward to hearing more updates about the excelsior 2022 project but this could be a huge deal for genius brands depending on whether this turns into a full production movie or what this actually turns out to be and then third and finally we did get the announcement that genius brands is launching a paid subscription service on april 15 2022 so that's coming up here pretty shortly and so one of the main problems with genius in the past has been that lack of revenue and at this point i think that is a price point where most people who are using the streaming platform regularly for their kids or whatever would probably be willing to pay that to get the extra bells in whistles of the kidaverse but also more importantly to remove ads from the platform so i'm excited to see probably in their quarter two or quarter three earnings later this year just how many people they get signed up at that 399 price point also guys if you're looking to get started with investing in the stock market i do have a completely free 30-minute training down in the description below that walks you through step-by-step how to get started with m1 finance so be sure to check that out at ryanoscribner.com m1-training if you want to learn more about that anyways guys that's going to wrap up this video i hope you enjoyed it if you made it to the very end please be sure to drop a like on this video and leave me a comment about what you think about these particular stocks and your thoughts in general about investments in oil as a whole like i said if you want to check out this full article that's going to be linked up in the description below over on my website ryanoscribner.com
i also have an affiliate link for m1 finance if you want to check them out as well and i have that completely free 30 minute video training that walks you through step by step how to get started with m1 finance but thanks so much for tuning in guys make sure you subscribe and hit that bell for future notifications and as always i hope to see you in the next video
2022-03-01 15:01
