In response to Russia’s invasion of Ukraine, Western governments have imposed economic sanctions to isolate Russia and cut it off from global oil markets. This caused a surge in crude oil prices last month. However, President Biden last week announced an unprecedented strategic oil reserve release of one million barrels per day to control gasoline price inflation. This caused crude oil prices to retreat slightly. Nevertheless, with several European countries planning to impose an import embargo on Russian oil, oil prices are expected to rally again.
Fundamentally sound oil and gas companies are known for paying high dividends and have a long history of increasing payouts annually. Dividend stocks are attracting investors’ attention because they offer a steady source of income. Investors’ interest in dividend stocks is evident in SPDR S&P Dividend ETF’s (SDY) 8.3% gains over the past six months.
