Due to the rise in oil prices this year, one of the hottest stocks to own has been Cenovus Energy (TSX:CVE)(NYSE:CVE), a dividend stock that is up around 75% this year. And recently, it just gave investors to remain bullish on it, recently releasing its latest earnings numbers.
While jumping into a stock after such a massive rally might feel risky, this powerhouse still looks like an incredible buy right now. The company recently stated that its profits rose to $2.9 billion in the most recent quarter. This was a massive more than three-fold increase. This remarkable growth was fueled by the company churning out new production while capitalizing on higher oil prices.
An energy supply shock in the Middle East has pushed oil to prices it hasn't been at in multiple years. Cenovus is positioned to benefit from this. The company is on track to produce the equivalent of a million barrels of oil per day in July. This milestone is driven in part by record production at its oilsands projects.
Beyond the impressive earnings reports, the long-term future looks bright for Canadian oil exporters. Several infrastructure projects proposed by industry could allow the oilpatch to export significantly more oil and gas in the coming years.
With enhanced scale and great operational efficiency, this cash cow continues prioritizing steady dividend payouts. It remains a highly compelling portfolio addition today. By leveraging high-margin production growth, income-focused investors can comfortably buy and hold this stock for the long haul. Even despite its impressive gains, the stock still offers a solid 2.2% yield.
