- An increasingly negative macroeconomic environment created a situation where generating positive stock market returns became significantly more difficult.
- Brazilian majority state-owned oil and gas company Petrobras seems to have defied all odds proving as a strong hedge against the upcoming storm by generating 80% in total returns last year.
- The oil giant is an endurable, well-structured, free cash flow dividend-oriented machine that's grown to become a long-time income investor favorite, and for a good reason.
- While Petrobras still remains somewhat undervalued, especially so when compared to its peers, we recognize that the valuations are slowly catching up with the company, especially given the nature of the commodity business.
For further details see:
Petrobras: Still The Best Oil Stock