Senator Murkowski and 20/20 Energy: How Energy Policy Can Impact Stocks: Valero Energy Corporation (VLO) and More

The Southern Company (NYSE:SO)

Perhaps a sleeper in the energy debate, The Southern Company owns several deep south public utility companies. And the company is developing two new nuclear reactors. Nuclear power is on the way back in the United States, with new applications moving through the pipeline as I type. They face some resistance but the public is now split on nuclear power instead of being opposed so I think they’ll go through. The company’s stock has traded within a seven-dollar range all year and is on the low end of that now at $43.85. If nuclear does expand as I predict, SO will see a growth spurt. Combine that with the company’s 4.47% dividend yield and this could be a play that works for you. You should have some.

Chevron Corporation (NYSE:CVX)

If the part of the plan devoted to increasing the export of liquid natural gas is put into play Chevron should see a nice little spike. Look, it takes no brains to notice Chevron, the company’s a monster. But an increase in LNG activity means that it is in the path of increased sales and that’s never a bad thing for a firm. It’s trading at $115.64 right now and had been below $100 as recently as last May. In November it hit a recent low at $101.62 so it’s grown 13.79% in about two and a half months. It’s also showing a pretty hefty dividend above 3%. It’s worth picking up, even at the $100+ price point. I’m not the only one who thinks so, either.

OK, so any professional, or even amateur, political observer knows that Murkowski’s plan will face hurdles. There will be opposition from radical greens who oppose any energy plan and there will be opposition from conservative energy groups who want to shoot down anything with the words ‘clean energy’ or ‘green energy’ in it. The point is that Murkowski’s plan can get some bipartisan support for trying to create a series of small, easier-to-support moves that don’t require a huge amount of discussion to enact. Nothing’s certain in Washington, DC these days, but this is one to watch and make portfolio adjustments about if you’re into the energy sector.

Good luck!

Follow Nate on Twitter: @natewooley

More columns by Nate Wooley:

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The article Senator Murkowski and 20/20 Energy: How Energy Policy Can Impact Stocks originally appeared on Fool.com and is written by Nate Wooley.

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