Husky Energy Inc (TSX:HSE) has fallen sharply over the past three months, losing more than 30% of its value as oil prices have started to slide yet again.
The good news for investors is that the stock has been stabilizing and has been rising the past few days, perhaps indicative that it may have reached a bottom. However, Husky’s stock is still heavily discounted, trading at around just half of its book value.
Meanwhile, the falling share price has given its dividend a big boost as well, with the stock now yielding around 5.4% annually. That’s a very good payout for a top oil and gas stock that may not last long if the stock price recovers.
Although investors may be down on the oil and gas industry as a whole, Husky has posted a profit in each of its past four quarters and has proven to be very stable. The stock is a very formidable investment option and with it trading near its 52-week low and offering a fairly high yield, it could be a great buying opportunity today.
Not only will investors have the ability to secure a strong dividend, but they’ll be in a good position to benefit from a depressed share price that could be due to rise, especially if things in the industry pick up.
And with a federal election around the corner that could see a more oil-and-gas friendly government in place, it could be just what’s needed to get oil and gas stocks rising again
