ConocoPhillips (COP), Apache Corporation (APA): Oil Prices Heading Higher! Try This Approach

If you can’t beat them, join them
Unfortunately, the rise in U.S. oil prices are not only causing pain at the pump, but are causing pain for investors in refining stocks. Phillips 66 (NYSE:PSX), for example, is down over 17% since hitting those late March highs. That means refining stocks aren’t the right investments to combat high oil prices. Instead, the way to profit from the pain at the pump is to simply buy an oil stock.

ConocoPhillips (NYSE:COP), for example, is up over 15% in the past three months as the company’s stock has taken the path opposite the one that its former refinery arm, Phillips 66 (NYSE:PSX), took. It’s a company that has operations around the world, but it’s really benefiting from higher U.S. oil prices as the company has prime position in high-growth U.S. oil fields, such as the Bakken and Eagle Ford. In fact, more than half of the company’s oil production growth over the next few years will come from the U.S. Finally, the company also pays a very generous dividend of more than 4%, which can be used to help offset your pain at the pump. So, my best advice to you, and the advice I gave my dad, is that if you can’t beat them, join them by adding an oil stock to your portfolio today.

The article Oil Prices Heading Higher! Try This Approach originally appeared on Fool.com.

Fool contributor Matt DiLallo owns shares of Phillips 66 and ConocoPhillips. The Motley Fool owns shares of Apache.

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