The search for quality stocks in the energy sector is more challenging than in many other sectors. The high cyclicality, strong dependence on commodity prices and capital cost-intensive business models often lead to fluctuating margins, low returns on capital and balance sheet weaknesses.

Despite these challenges, there are companies that stand out positively thanks to their solid financial position, strategic focus or innovative business model. Here I present a selection that I find interesting despite certain compromises:

Verbund $VER (+1.82%) (focus on hydropower, 51% state shareholding)

Energiekontor $EKT (-0.79%) (growth value, cash flow oriented)

Texas Pacific Land $TPL (+2.17%) (extremely profitable)

Hess $HES (-0.18%)(cooperates with $XOM) (+2.32%)

EOG Resources $EOG (+2.69%) (high ROIC)

Which companies do you see as particularly promising for a long-term investment?

Hello everyone,

I'm from Spain and I'm following a dividend investment strategy as I want to take advantage of the relatively low tax burden of only 19% on dividends in Spain. My portfolio is a combination of ETFs and individual stocks, trying to find a balance between growth and high dividends, as well as between developed and emerging markets.

First, an overview of my ETFs, which I can divide into two categories:

• Emerging Markets:
• $IEEM (+1.08%)
  iShares MSCI EM ETF: Growth-oriented (Growth)
• $HDEM (+0.42%) Invesco FTSE EM High Dividend Low Volatility ETF: High dividend yield (High Yield)

• Developed Markets:
• $ISPA (+1.13%)
  iShares STOXX Global Select Dividend 100: High dividend yield (High Yield)
• $GGRP (-0.03%)
  WisdomTree Global Quality Div Growth: Growth-oriented (Growth)

These ETFs cover different regions and strategies: some focus on dividend growth, while others target high dividend yields. I also have positions in both emerging and developed markets.

My individual stocks:

• $O (-0.06%)
  Realty Income because it is the typical dividend stock that almost everyone has and it is known for stable monthly distributions.
• $EOG (+2.69%)
  Resources I like because of its strong ability to grow dividends and solid growth potential in the energy sector.
• $CB (-1.2%)
  Chubb Limited I have included in my portfolio because Warren Buffet has invested in them. They also offer good dividend growth and have strong upside potential.

I would be very interested to hear your thoughts: Do you think this strategy has potential for success in the long term? Are there areas where I might need to diversify or consider a different approach?

Thanks in advance for your opinions!

This text was created with the help of artificial intelligence, as I am not a native speaker of German.

I am thinking about $EOG (+2.69%) because I like dividends and growth. Are there any reasons not to, other than not liking dividends?

Restock pt.5