Penn West Petroleum: A Canadian Oil Player With Significant Dividend Growth Potential

When it comes to energy related income investments, it can be promising to look beyond national borders and traditional U.S. energy companies concentrating on the domestic shale plays. Canadian companies are just as attractive from an income perspective and Canadian equities allow income investors to diversify their existing portfolio. Many investors, unfortunately, are susceptible to the 'home bias' which stipulates that U.S. investors have extraordinary exposure to U.S. companies, U.K. investors have too much exposure to British companies etc. Home bias eventually leads to a situation where investors are under-diversified and also often pass up interesting growth stories merely because they play out in other countries. Canadian investments are interesting for U.S. investors mainly for two reasons: First, the U.S. is an important export market for Canadian oil and the interconnectedness of the two countries' energy markets has greatly increased over the last decade. Secondly, Canada is close enough to... Read more

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