Pick Up This Ideal Play in the Energy Sector

Andy Snyder|December 22, 2022

Normally, we reserve our stock picks for paying subscribers. That’s simply how things work.

Manward has a bevy of services that offer everything from one long-term pick a month to several short-term, in-and-out plays per month.

Most folks get it. We wouldn’t be able to keep the lights on or keep sending you these columns each morning without some sort of revenue stream.

‘Tis life, we suppose.

But it’s the season of giving. And every day we hear from readers looking for a freebie.

So here it is, in the spirit of the season… our gift to you.

We’ve written a lot about the energy sector in recent weeks. It’s been hot all year, and it looks like it’ll be even more volatile next year.

One of the simplest and most effective ways to play this trend is to grab a stake in MDU Resources (MDU).

It’s a buy-and-hold stock that offers ideal, income-producing exposure to a critical industry.

MDU’s main business is making electricity throughout the northern tier of the country. It used to do it via coal pulled from its own mines. But it sold the mines and is converting to natural gas and wind these days.

MDU’s management team has been very savvy about the transition, mindful of its effect on cash flow and its impact on the business.

What’s most appealing is the company’s shift toward infrastructure – it has its eye on the future. MDU has gotten into the natural gas transportation and storage business – a move that has paid off this year and will certainly offer strong rewards over the next decade.

It’s also one of the largest grid infrastructure builders in the country. That’ll be good news as Uncle Sam writes virtual blank checks to get things upgraded. The company will see some huge contracts over the next 24 months as those checks start to get cashed.

This isn’t a speculative, get-rich-tomorrow sort of play. Again, it’s one to buy and forget about. Let the 3% dividend do its work. Keep reinvesting those quarterly proceeds and this stock will become a beast that grows itself.

It’s a good time to buy, as the company is aggressively focusing on its assets and what they mean in a quickly evolving industry.

MDU is a solid company run by a strong management team.

Get some shares… and have a merry Christmas.