How To Profit From Last Year’s Oil Prices
If there was a way that you could still benefit from last year’s high oil prices, would you be interested? Cramer has found the way to do it: with Linn Energy , an oil and gas exploration company that has a big dividend.
Right now Linn Energy yields a little below 15%, with its distribution of $2.52 a share. Cramer says that if they can maintain that distribution and you reinvest dividends into the company, then this stock will allow you to double your money in four years, even if its share price goes nowhere.
How does Linn pay us such a massive yield? How does it get $100 a barrel for oil like Cramer suggested? The company hedged itself when oil and natural gas prices were still exorbitant - 100% of its 2009 production, 102% of its 2010 production and 92% of its 2011 production.
For the full analysis about why Cramer thinks Linn Energy is an attractive stock, along with an interview CEO Michael Linn, check out the video!
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