After last year's record-breaking gas prices, gas station stocks became even more of a darling to investors. The global gas station industry holds an estimated value of $2.3 trillion. Experts project a 2.5% annual growth over the next five years. This growth stems from various factors: increasing gasoline demand in emerging markets, expanding electric vehicle market, and surging convenience store popularity.
While some argue that EV charging stations might take away from gas station stocks, that couldn’t be further from the truth. Indeed, the demand for EV infrastructure creates an opportunity for gas station stocks to fulfill it. But we’ll touch more on that later.
Gas Station Stocks List:
- ExxonMobil (XOM)
- Chevron (CVX)
- Valero Energy (VLO)
- Phillips 66 (PSX)
- Murphy USA (MUSA)
Not only are gas station stocks a solid EV charging station play, but they’re usually reliable dividend growers. Some of the gas station stocks listed below have been paying dividends for over 100 years. With companies like that, you know you can have peace of mind when you invest your hard-earned money. Join Wealth Daily today for FREE. We’ll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: “Why You Need to Fire Your Money Manager.”
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Join Wealth Daily today for FREE. We’ll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: “Why You Need to Fire Your Money Manager.”
As the gas station industry continues to grow, investors are looking for ways to get involved. One way to do this is by investing in gas station stocks. Here are the top 5 gas station stocks to buy in 2023 and beyond…
6 Gas Station Stocks to Buy Now
Gas Station Stock #1: ExxonMobil (XOM)
ExxonMobil is the largest oil and gas company in the world, and it has a strong presence in the gas station industry. The company operates over 6,000 gas stations in the United States, and it is also a major refiner and marketer of petroleum products. Exxon not only operates in the United States, but over 40 countries total.
Right now, XOM is benefiting from the rising demand for gasoline in emerging markets. ExxonMobil, a Fortune 500 company, emerged in 1999 from the merger of Exxon and Mobil. Its strong foundation sets it up for future growth.
ExxonMobil's primary business is the exploration, production, transportation, and marketing of crude oil and natural gas. They have a strong track record of profitability, and it is well-managed. The company has a good balance sheet, and it is not highly leveraged. ExxonMobil is also a dividend-paying stock, which means that investors can earn income from their investments.
Gas Station Stock #2: Chevron (CVX)
Chevron is another large oil and gas company with a strong presence in the gas station industry. The company operates over 5,000 gas stations in the United States, and it is also a major refiner and marketer of petroleum products. It is the second-largest oil and gas company available to trade on public markets (by market cap).
Chevron was founded in 1879 as Standard Oil of California. The company was renamed Chevron in 1984. CVX has paid a dividend to shareholders for over 100 years, making it part of an elite club.
Chevron has demonstrated a commendable history of profitability, along with effective management. The company maintains a healthy balance sheet and avoids excessive leverage.
Gas Station Stock #3: Valero Energy (VLO)
Valero Energy (VLO) is a leading multinational energy corporation operating in the petroleum refining industry. VLO, known for its refining expertise and operational efficiency, boasts 15 refineries strategically positioned across the United States.
The company focuses on producing various refined petroleum products including gasoline, diesel fuel, jet fuel, petrochemicals, and more. Through a strong distribution network, Valero Energy serves customers across the country, operating numerous gas stations and retail outlets.
Over the years, Valero Energy has established itself as one of the top players in the industry, delivering solid financial performance. The company actively pursues growth opportunities and invests in modernizing its facilities to enhance efficiency and maintain competitiveness. Furthermore, Valero Energy places a strong emphasis on environmental stewardship, implementing sustainable practices throughout its operations.
Valero Energy also pays a dividend.
Gas Station Stock #4: Phillips 66 (PSX)
Phillips 66 (PSX) is a diversified energy manufacturing and logistics company with a presence across various segments of the energy industry. Its operations encompass refining, marketing, chemicals, and midstream businesses.
Phillips 66 owns and operates refineries globally, producing a range of petroleum products in regions such as the United States, Europe, and Asia. With a focus on refining crude oil and distributing refined products, Phillips 66 has a strong presence in the downstream sector.
The company also engages in chemical manufacturing, producing petrochemicals that find application in various industries. In addition, Phillips 66 engages in midstream operations encompassing the transportation, storage, and marketing of crude oil, natural gas, and refined products.
Phillips 66 demonstrates a robust history of profitability, underpinned by effective management. The company maintains a healthy balance sheet and avoids excessive leverage. And yes, Phillips 66 is also a dividend-paying stock.
The company consistently invests in research and development to drive innovation and optimize its operations. Alongside its manufacturing and logistics activities, Phillips 66 operates a widespread retail presence, encompassing gas stations and convenience stores that cater to consumer fuel and convenience needs.
Gas Station Stock #5: Murphy USA (MUSA)
Murphy USA is a convenience store operator with a large network of gas stations in the United States. The company operates over 1,500 gas stations in the United States, and it is also a major player in the convenience store industry.
Murphy USA's retail locations offer a convenient one-stop solution for customers' fuel and daily needs. Alongside fuel, they provide an array of products such as snacks, beverages, groceries, tobacco, and automotive supplies. The company emphasizes customer service and aims to create a positive and convenient experience for its patrons.
The company has a strong focus on safety and environmental responsibility. Murphy USA ensures compliance with regulations and implements measures to minimize the impact of its operations on the environment. By prioritizing sustainability, Murphy USA aims to contribute positively to the communities it serves.
Murphy USA has a strong track record of profitability, and it is well-managed. The company has a good balance sheet, and it is not highly leveraged. Murphy USA is also a dividend-paying stock, granting shareholders extra income.
Gas Station Stock #6: Service Properties Trust (SVC)
Service Properties Trust is a real estate investment trust (REIT) that owns and operates income-generating real estate. The company's portfolio consists of over 220 hotels with over 37,000 guest rooms, as well as over 765 retail service-focused net lease properties. Retail service-focused net lease properties is basically a fancy word for gas stations (among other services). SVC's hotels are located in the United States, Puerto Rico, and Canada, while its retail properties are located in the United States.
The company was founded in 1996, and its headquarters are located in Newton, Massachusetts. Right now, SVC's market cap is just under $1.4 billion but they have over $11 billion invested in service stations and hotels. While it's not the first company that comes to mind when you think of gas station stocks, you'll find it could fit into your portfolio nicely.
SVC is a publicly traded company, and its stock is listed on the Nasdaq stock exchange under the ticker symbol "SVC." The company has a good track record of performance, and it has paid a quarterly dividend to its shareholders for over 20 years. Their last dividend paid out 9.38%! SVC is a good investment for investors who are looking for exposure to passive real estate investing or gas station stocks.
However, it should be noted…as far as gas station stocks go, this could be considered a little bit of a stretch. I say this mainly because the company does not own any gas stations, and its retail properties are not primarily leased to gas station operators. Technically, some of SVC's retail properties do include gas stations as tenants. For this reason (and the fact that we're HUGE fans of REITs), I am including it on the list of gas station stocks to own.
Why Invest in Gas Station Stocks?
There are a number of reasons why you might want to consider investing in gas station stocks. For example, gas stations are typically located in high-traffic areas, which means that they have a steady stream of customers. Additionally, gas stations can be a good source of recurring revenue, as people tend to buy gas on a regular basis.
As you can see, since the crash of 2020, gas station stocks have recovered nicely.
All of the stocks have surpassed their pre-covid levels and have promising futures. In addition to the growth potential, there are plenty of reasons to invest in gas station stocks.
Some of the benefits of investing in gas station stocks include:
- Steady stream of customers: Gas stations are typically located in high-traffic areas, which means that they have a steady stream of customers. This can provide investors with a reliable source of income.
- Recurring revenue: People tend to buy gas on a regular basis, which means that gas stations can be a good source of recurring revenue. This can help to reduce the risk of volatility for investors.
- Diversification: Investing in gas station stocks can help to diversify your portfolio and reduce your risk. This is because gas stations are not as susceptible to economic downturns as other industries.
- Dividends: Many gas station stocks pay dividends, which means that investors can earn income from their investment. This can be a way to generate passive income, which can be helpful for retirement planning.
Risks of Investing in Gas Station Stocks
Although investing in gas station stocks presents multiple advantages, it is important to acknowledge the accompanying risks. For example, the price of gas is volatile, which can impact the stock price of gas station companies. Additionally, the gas station industry is cyclical, which means that it is susceptible to economic downturns.
Here are some of the risks of investing in gas station stocks:
- Volatile price of gas: The price of gas is volatile, which means that it can fluctuate significantly in a short period of time. This can impact the stock price of gas station companies, as investors may sell their shares if they believe that the price of gas is going to fall.
- Cyclical industry: The gas station industry is cyclical, which means that it is susceptible to economic downturns. When the economy is doing poorly, people tend to drive less, which means that they buy less gas. This can lead to lower profits for gas stations and lower stock prices.
- Competition: The gas station industry is competitive, and there are a number of large companies that operate gas stations. This can make it difficult for smaller companies to compete, and it can also lead to lower profits for the industry as a whole.
Final Thoughts on Gas Station Stocks
Getting involved in the expanding gas station industry can be accomplished through investing in gas station stocks, offering a promising avenue for participation. Gas station stocks are a long-term investment. Don't expect to get rich quickly. By investing for the long term, you can give your investment time to grow.
As the gas station industry steadily increases, gas station stocks will follow suit. By compounding your dividend income from these companies, you could see even more growth in a shorter time period. There is another way to take advantage of gas station stocks and EV charging stations simultaneously.
Jason Williams has discovered a set of REITs that are leading the charge in EV infrastructure expansion. The best part? Each of these REITs pays a hefty dividend. He’s been showing the readers of Wealth Daily The Wealth Advisory how to take advantage ASAP.
Good luck on your journey investigating and investing in gas station stocks.