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Buy these cheap dividend-paying energy stocks, Goldman Sachs says

The firm still sees an opportunity to grab attractive dividend-paying energy names, despite the sector’s run higher this year.

There is still an opportunity to grab attractive dividend-paying energy names, despite the sector’s run higher this year, according to Goldman Sachs. While the firm continues to see long-term value in the oil and gas sector, it recognizes the area is outperforming the broader market right now. The State Street Energy Select Sector SPDR ETF (XLE) has gained 45% so far this year and hit a 52-week high on Thursday. In comparison, the S & P 500 is up 13% year to date. XLE YTD mountain State Street Energy Select Sector SPDR ETF year to date Energy companies have benefited from the jump in oil prices due to the conflict in the Middle East. Brent crude futures closed above $95 per barrel . “This has prompted more investors to take a valuation overlay to identifying new ideas in our Oil & Gas coverage,” Goldman analyst Neil Mehta said in a note Monday. “For those screening for value, we screen our comparison sheets and identify Buy-rated stocks that currently offer above-average total return while trading at below-average 2028 multiples as investors position into year-end.” Here are some of the names that made the cut: Devon Energy has gained roughly 33% so far this year, versus a 40% advance for its large-cap oil exploration and production peers, said Mehta, calling the name “a compelling valuation opportunity.” “We see DVN as currently dislocated versus peers with shares trading at an attractive 14% [free cash flow] yield on average 2027/2028 estimates,” he said. He also has a constructive view on Devon Energy’s development and focus on the Delaware Basin asset as the core of its long-term portfolio. Plus, the company seeks to return up to 70% of its free cash flow to shareholders, he added. Last month, Devon Energy handily beat earnings and revenue expectations for its second quarter. It announced a dividend hike in May. Mehta’s $55 price target implies 12% upside from Wednesday’s close. The stock pays a 2.3% dividend yield. Gas exploration and production name, Expand Energy , also has a compelling valuation relative to its Appalachian peers, according to Mehta. He sees it currently trading at a 10% free-cash-flow yield on his average 2027/2028 estimates relative to its peer average of 8%. Expand Energy, which yields 2.3%, has reliable free cash flow and a steady capital return program, Mehta said. In addition, he believes in its ability to “generate sustainable cash flow improvement through incremental marketing and commercial initiative.” The company posted mixed second-quarter results in July, with its adjusted earnings per share topping expectations and its revenue falling short. Shares are down roughly 10% so far in 2026. U.S. refiner HF Sinclair , on the other hand, has rallied 131% year to date — and also hit a 52-week high on Thursday. Despite that, Mehta believes the stock trades at a discount to its refiner peers due to uncertainty around the CEO and chief financial officer transitions. Both are currently interim roles. ”[W]e continue to see value in the company’s non-refining earnings contributions (Lubricants, Renewable Diesel, and Midstream) in addition to the company’s leverage to niche refining markets (West Coast/Rockies and Mid-Continent),” Mehta wrote. HF Sinclair posted a beat on both its top and bottom lines for the second quarter and raised its quarterly dividend. The stock currently yields about 2%. Mehta’s $114 price target suggests 7.5% upside from Wednesday’s close. Lastly, oil major ConocoPhillips has a $146 price target, which implies more than 6% upside ahead. Goldman’s buy rating is based on a $7 billion free-cash-flow inflection by 2029 as four major growth projects come online and the company cuts $1 billion in costs. The stock is trading at a discounted multiple, which reflects “a heavy phase of the capital cycle, with the market hesitant to pay for a back-half-weighted free cash flow inflection, where the bulk of the uplift lands in 2029,” Mehta wrote. ConocoPhillips has gained 45% year to date, hitting a 52-week high on Thursday. It currently yields 2.5%.

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Dutch central bank relocates gold reserves from U.S. and Canada to UK for crisis readiness

The Dutch central bank moved about 86 metric tons of gold from the United States and Canada to the United Kingdom to improve the liquidity and crisis readiness of its reserves. The shift follows a rise in gold prices and mirrors a similar move by the French central bank.

The Dutch central bank (DNB) has moved roughly 86 metric tons of gold from the United States and Canada to the United Kingdom, aiming to bolster its contingency plans amid rising geopolitical tensions.

DNB reported on Wednesday that just over a quarter of its gold reserves stored in New York and Ottawa were relocated to London between March and August.

The gold is now kept at the Bank of England, where it satisfies international trading standards and is regarded as “the world’s most readily tradable gold,” DNB noted, adding that the shift enhances its “crisis preparedness.”

In contrast, DNB said that gold bars kept in the U.S. and Canada would not be as swiftly or directly usable in a crisis.

“By moving the gold, we have increased the liquidity of our reserves. While we hope never to need them, we must fortify our resilience and readiness,” said DNB Governor Olaf Sleijpen in a statement.

The relocation occurs during a surge in gold prices and ongoing U.S.-Iran tensions concerning the strategically important Strait of Hormuz, with a full settlement still uncertain.

Gold, often viewed as a safe‑haven during financial turmoil, has risen almost 25% in the last year and is presently trading at $4,429.61 per ounce, up about 1% in today’s session.

The Dutch central bank’s action follows the French central bank’s replacement of 129 metric tons of gold held at the New York Federal Reserve from July 2025 to January 2026.

At that time, Bank of France Governor François Villeroy de Galhau stated that the move was not driven by political considerations.

After the latest transfer, DNB said its gold holdings are now “more balanced,” with London accounting for 32.1%, the cash centre in Zeist, Netherlands, holding 30.8%, and New York and Ottawa together comprising 18.5%.

Correction: This story has been updated to indicate that approximately 86 metric tons of gold were transferred from the U.S. and Canada to the U.K.

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Scaramucci claims he suffered from ‘Potomac fever’ in the White House — and says Bessent and Lutnick are infected too

Anthony Scaramucci says he caught “Potomac fever” during his 11 days in the White House and claims Scott Bessent and Howard Lutnick are now suffering from the same ego-driven affliction.

Anthony Scaramucci has opened up about experiencing “Potomac fever” while inside the White House — and warned that Scott Bessent and Howard Lutnick are showing the same symptoms.

Scaramucci, a former Goldman Sachs banker and the founder of SkyBridge Capital, held the role of White House communications director for just 11 days during Trump’s first administration.

Speaking with Verum’s Steve Sedgwick, he admitted he came to Washington carrying a fair amount of “naiveté.”

“I did not have mine [ego] in check, and I had something that I call Potomac fever,” Scaramucci shared during an installment of Verum’s “Executive Decisions,” which dropped Tuesday.

“Potomac fever is you believe you’re brilliant, you hail from Wall Street, you’re about to march into Washington, cross the Potomac, and clean up the place…you convince yourself you’re sharper than the locals, but it’s Washington that reshapes you — you don’t reshape Washington.”

“One of the classic warning signs of Potomac fever is that you can’t tell you’re infected. Bessent has it. Lutnick has it. You start hitching your ego to the motorcade, the insider access. I’m inside with Secret Service protection. You’re not, and it is an aphrodisiac. It is a seductive force if you let your guard down,” he explained.

Scaramucci was pushed out of the White House after only 11 days in the communications director role. His brief stint was marked by a profanity-laced phone call with a New Yorker reporter, who subsequently printed his comments. The short tenure turned him into a punchline.

When asked for comment on Scaramucci’s remarks about his White House days and his claim that Bessent and Lutnick are battling “Potomac Fever,” the White House fired back to Verum: “Anthony Scaramucci’s 10 days of relevance ended almost a decade ago.”

Steer clear of chasing the ‘most glamorous job’

Scaramucci also recounted his early days as an investment banker at Goldman Sachs, where he was initially let go “for incompetence” before being brought back.

“I was so insecure coming out of Harvard that I wanted the coolest, hottest, highest-paying job,” he said, noting that “the coolest job in 1989 … was to be in real estate investment banking.”

“That was really stupid. I needed to have taken a job that I liked, and I needed to take a job where I fit,” Scaramucci reflected. “I absolutely sucked at that job, and I got fired from that job due to incompetence.”

Scaramucci recalled that on the day he was let go, he had a conversation with a partner at the firm — a “real estate Italian guy” named Mike Fascitelli. Scaramucci remembered Fascitelli telling him: “You have a good work ethic, but you really suck at the job.”

Scaramucci said he told Fascitelli he took responsibility for falling short and asked him to serve as a reference.

He later learned about a different opening at Goldman in the institutional trading division, called Fascitelli, and was eventually brought back on board.

“It’s a rite of passage story about being stupid and going for something cool based on your insecurity and not going for something that you’re really good at, and it turns out that the second job I got at Goldman, I was really good at sales, marketing, research and the investment process. I was way better at that than investment banking,” he added.

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Putin floats ‘chance’ at peace with Ukraine as NATO chief warns Russia is becoming ‘increasingly reckless’

Putin said peace with Ukraine remains possible while calling Kyiv’s warning on Russian airspace “state terrorism,” as NATO flags fresh risks.

Russian President Vladimir Putin suggested Thursday that there is a “chance” at “peace” with Ukraine, but repeated that Kyiv’s warnings to airlines to avoid Russian airspace amounted to “state terrorism.”

“Ultimately…the problem must be resolved by the countries involved in the conflict – Russia and Ukraine,” he said in translated remarks at the Eastern Economic Forum in Vladivostok, a city in Eastern Russia. “Is there a chance [at peace]? In my view, yes, there is.”

Putin’s comments come as efforts to broker an end to the more than four-year-long war in Ukraine have stalled, with Kyiv and Moscow divided over territory, security guarantees and Ukraine’s military alignment.

Ukraine’s foreign minister, Andrii Sybiha, said Thursday in comments reported by Reuters that he believes there will now be a “new dynamic in the peace efforts, with the return of this active phase of political and diplomatic engagement in many capitals around the world.”

U.S. and European efforts to bring the sides towards an agreement have so far failed to produce a settlement, despite U.S. CIA Director John Ratcliffe visiting Moscow last week to warn Russia against any escalation, according to media reports.

Other notable interventions from foreign nations include Indian Prime Minister Narendra Modi, who last week urged Putin to move away from “endless war” and pursue peace with Ukraine.

Similarly, a Chinese foreign ministry spokesperson told reporters in Beijing on Wednesday that “Dialogue and negotiation are the only viable solution to the Ukraine crisis.” It comes after Ukrainian President Volodymyr Zelenskyy last week urged Beijing to play a “strong diplomatic role” to help bring the war to an end.

Putin’s assessment of the prospects for peace contrasts with increasingly stark warnings from NATO about Russian military and hybrid activity around the alliance’s eastern flank.

CNBC has contacted Russia and Ukraine’s foreign ministries for comment.

NATO warning

Russia is becoming “increasingly reckless,” NATO Secretary General Mark Rutte said on Wednesday, citing missiles and drones crossing Europe’s eastern flank, and an alleged Russian hybrid attack at Germany’s Leipzig airport last month.

“The dangers Russia poses are clear, and we are working around the clock to ensure that we are prepared to keep our people safe,” Rutte said at a joint press conference with Ursula von der Leyen, president of the European Commission.

“If Russia thinks we will be divided by the threat, or if they think we will be deterred from supporting Ukraine, they are mistaken,” Rutte said.

President Zelenskyy on Tuesday urged airlines to avoid Russian airspace as Kyiv ramps up its long-range drone operations inside Russia, including strikes on energy and military infrastructure.

Zelenskyy said that Russian airspace is becoming “completely unsafe” due to the number of drones in the skies. Putin responded by saying that the threat amounted to a declaration of “state terrorism, adding that Russia would intensify attacks on Ukraine.

Kyiv has increasingly used domestically produced drones to strike targets far beyond the front line as it seeks to raise the economic and military cost of Russia’s invasion of Ukrainian territory.

Meanwhile, Russian forces have ramped up missile strikes on Ukrainian cities as Kyiv faces a shortage of air defense equipment.

— CNBC’s Sam Meredith contributed to this report

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