12 Best Forever Stocks To Buy Now

9. ConocoPhillips (NYSE:COP)

Number of Hedge Funds Holding Stakes as of Q2: 72

Market Cap as of September 18, 2024: $125.75 Billion

ConocoPhillips (NYSE:COP) is one of the best forever stocks to buy to diversify an investment portfolio into the energy sector. The company explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids.

Consequently, ConocoPhillips remains well positioned to receive a significant boost as the interest rate environment improves with the cutting by various global central banks. Lower interest rates should significantly boost consumer purchasing power, resulting in strong demand for oil and gas.

ConocoPhillips (NYSE:COP) is the most valuable US-based independent oil and gas company and is well poised to benefit from a booming economy. The company boasts an impressive track record of acquisitions that generate significant value, including Concho resources.

Given that the company’s strategy is based on a break-even strategy of oil trading at just $35 a barrel, it is well positioned to generate significant revenues with oil stabilizing above $75 a barrel. Additionally, it boasts of a long-lasting financial slate, having kept its balance sheet with low net long-term debt and solid debt in its capital.

ConocoPhillips (NYSE:COP) provides returns to its investors through multiple methods. Its ultimate aim is to allocate at least 30% of its operating cash flow to investors throughout the period. Its ordinary dividend sits at $0.58 per share per quarter or a 2.96% yield on its own.

By the end of June, 72 hedge funds were optimistic about ConocoPhillips (NYSE:COP), up from 62 in the previous quarter, according to Insider Monkey’s database. Eagle Capital Management emerged as the largest stakeholder in the second quarter, holding over 14.52 million shares.

Here is what Invesco Distributors, Inc. said about ConocoPhillips (NYSE:COP) in its Q2 2024 investor letter:

“Stock selection in the industrials and health care sectors detracted from relative performance during the quarter. Selection and an underweight in consumer staples also hurt relative return as the sector was one of just two index sectors with a positive return for the quarter. ConocoPhillips (NYSE:COP): The company announced its acquisition of Marathon Oil in May. The deal is expected to increase earnings and will increase the scale of Conoco’s production assets. However, the stock traded lower on the news.”