Oil prices have been on a tear over the last year, rallying to nearly $70 a barrel this month.
That may tempt you into buying Chevron stock - or one of the other Big Oil behemoths - but that's a mistake...
You see, oil supermajors, like Chevron Corp. (NYSE: CVX), have all the name recognition, but there are much better oil investments on the market. The kind of oil stocks that will make you money.
Big Oil companies are bogged down in elaborate "mega-projects" sprawled across the world. They sunk billions on top of billions into these capital intensive projects that aren't showing the returns they'd hoped. It also means they can't react quickly to the oil market's changing landscape.
Smaller oil companies can, and those profits get passed right back to you...
Now, TV pundits might tell you the Big Oil companies pay out healthy dividends, and that makes them worth owning.
That's only part of the story.
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The oil supermajors do pay dividends. Chevron pays a dividend yield of 3.58% on a share price of $125.27. You could do a lot worse. But Money Morning Global Energy Strategist Dr. Kent Moors says that's all they are good at, and it doesn't make them worth owning.
In fact, other oil companies pay similar - or better - dividends, and you'll own more nimble companies with much better profit potential.
Consider the stock we're about to show you.
It pays a superior dividend yield of 4.97%, and that's actually the least exciting thing about it.
The company transports 20% of the oil crossing the Canadian border, and its expansion into natural gas is transforming it into an all-around energy powerhouse.
In fact, it handles 25% of North America's natural gas transportation every day.
That's going to be hugely lucrative too. The Energy Information Administration (EIA) estimates that natural gas production will soar 471% in 2018.
And the best part is, this company just hit a perfect Money Morning Stock VQScore™...
The Best Oil Stock to Add to Your Portfolio Right Now
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TransCanada Pipelines LP (NYSE: TRP) is one of the best oil and gas stocks you can buy right now...
You've almost certainly heard of the company, too. It's behind the controversial KeystoneXL pipeline.
Back in March, U.S. President Donald Trump signed a permit approving the Keystone XL pipeline, TransCanada's 1,180-mile oil pipeline connecting Canadian oil to U.S. hubs. It was initially stopped in 2015 under the Obama administration.
Keystone XL extends from the Athabasca oil sands of Alberta, Canada, to the United States' Gulf Coast. When it is finished, it will be able to move more than 800,000 barrels of heavy crude oil from our northern neighbor to the United States.
The pipeline's approval is good news for the company, but there's more to TRP stock than this pipeline.
TransCanada moves 20% of Canada's oil exports to the United States.
But its growing natural gas business is even more impressive.
TransCanada's pipelines transport one-quarter of the total natural gas produced in North America each day. Plus, TransCanada's capacity totals 653 billion cubic feet, meaning it could transport even more.
And it soon will...
The Energy Information Administration (EIA) estimates that natural gas production will soar 471% in 2018. That's not to mention TransCanada's recent expansion into the explosive Mexican market, with a $3.5 billion investment.
Mexico's natural gas production is forecast to double by 2020, so TRP is investing early to profit from the boom.
On top of that, TransCanada is an exceptionally well-run company.
Last year, TransCanada reported $7.6 billion in profit. But the even more impressive piece is its profit margin, which came in at nearly 34%. A 34% profit margin is twice as much as the average company listed in the S&P 500.
The company simply prints money.
And it returns that to shareholders.
TRP's yield is also more than double the yield on the average S&P 500 stock. And TRP has hiked its dividends for 18 straight years - a tremendous indicator of stability and shareholder value commitment.
TransCanada has a strategy of hiking dividends by 10% annually over the coming three years.
Best of all, the company is a steal right now. With a perfect VQ Score of 4.75, you're getting a great deal on a company with real growth potential.
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