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Holiday gifts in discount prices for foreign oil stocks with high dividends and low P/Es (BP, TOT & E)

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Foreign oil companies such as Eni SPA ( E , quote ), Total ( TOT , quote ) and BP PLC ( BP , quote ) are ideal holdings in this market due to low price-to-earnings ratios and high dividend yields.Over time, the demand for oil will only increase. Both China and India are growing. Even if China's growth rate declines by 10%, the country's economy will still expand by by more than 8% in 2012.

The emerging middle class around the world will also increase the demand for oil as more cars will be on the road. Declines in share prices for Eni SPA (E), BP PLC (BP) and Total SA (TOT) should be looked upon as discounts as each company will benefit tremendously from these trends, no matter what happens to its share price over the short term.

Each company has a price-to-earnings ratio much below the Standard & Poor's 500 Index average and a dividend yield that is much higher. BP PLC pays a dividend of 4.23%. Eni SPA has a dividend of 7.17%. Total SA offers a dividend yield of 6.84%.

Many shrwed investors such as Jim Rogers believe that financial markets will continue declining. If so, that should be viewed as an opportunity to accumulate blue chip oil companies such as Eni SPA (E), Total SA (TOT) and BP PLC (BP) at a discount.

As detailed on www.emergingmoney.com in a recent article, " Oil is rising due to speculation-not economic demand -- and it will not last ", the fundamental economic demand is not there so oil company prices have farther to fall.

After being bought, however, the strong dividend yield of each will more than compensate for the weak performance of the stock market.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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