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re: There’s more oil and gas than ever — and the industry is tanking
Posted on 2/10/20 at 2:03 pm to Thib-a-doe Tiger
Posted on 2/10/20 at 2:03 pm to Thib-a-doe Tiger
quote:
And oil isn't going anywhere anytime soon. I am enjoying the depressed prices of oil stocks, as I know the dividends are still coming in, and the share prices will recover
I ask this question as a novice admittedly, but if the stock price continues to go down based on reduced returns, the dividends will soon go away too, no?
1
Posted on 2/10/20 at 2:08 pm to AnotherRound
Generally, yes you are absolutely right - declining commodity prices paired with declining production (due to limited investment) leads to less cash flow available to pay dividends. But every company is different. Stalwarts like XOM and CVX will probably be able to support their current level of dividends for a good while - several years potentially - at current commodity prices. Smaller companies probably will not be able to.
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