Pioneer Natural Resources
Many Wall Street analysts love this stock as a pure crude oil play, and the company employs a variable dividend strategy. Pioneer Natural Resources Co. (NYSE: PXD) operates as an independent oil and gas exploration and production company in the United States.
The company explores for, develops and produces oil, natural gas liquids (NGLs) and natural gas. It has operations in the Midland Basin in West Texas. As of December 31, 2021, the company had proved undeveloped reserves and proved developed non-producing reserves of 130 million barrels of oil, 92 million barrels of NGLs and 462 billion cubic feet of gas, and it owned interests in 11 gas processing plants.
Its production services are supported by 100 well-servicing rigs, more than 100 cased-hole, open-hole and offshore wireline units, and a range of advanced coiled tubing units.
Pioneer Natural Resources is a huge player in the Permian Basin and the Eagle Ford in Texas, and it owns more than 20,000 locations in the world’s second-largest oil reservoir in the Midland Basin. With a stellar balance sheet, the company is poised to remain a top player in the Permian, as it expects to deliver solid production growth going forward.
Various media sources have said the company may still be in ongoing discussion with Exxon Mobil for a possible purchase or merger.
Shareholders receive a 10.33% dividend, but as it is variable, that could vary from quarter to quarter depending on crude pricing and production. Pioneer Natural Resources stock has a $319 target price at Piper Sandler. The consensus target is much lower at $248.41, and Wednesday’s close was at $227.94.
Verizon
This top telecommunications stock offers tremendous value at current levels. Verizon Communications Inc. (NYSE: VZ) is one of the largest U.S. telecom companies. It provides wireless and wireline service to retail, enterprise and wholesale customers.
Verizon’s wireless network serves approximately 120 million mobile connections with 115 million postpaid subscribers. Verizon’s wireline business has undergone a period of secular decline due to wireless substitution and cable competition.
The company also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.
Verizon and other big telecom giants have been mauled recently due to concerns over lead phone lines, and while this could keep a lid on the stock in the near term, many feel it is the best buying opportunity in years.
Investors receive a 7.81% dividend. The Cowen price objective is $49. The consensus target is lower at $36.49. Verizon Communications stock closed at $33.32 on Wednesday.
Bull markets are sustained when the economy is gaining strength. While the breakout of the S&P 500 20% higher than the lows was significant in June, all bear markets are more than capable of bull market strength rallies. The current rally has been very narrow, and fewer than 10 stocks have accounted for the lion’s share of S&P 500 gains. The best advice is to take profits and shift to passive income-producing winners while the investing wind is at your back.
Originally published at 24/7 Wall St.
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