Traders are watching oil vs. oil stocks and thinking something has to give.
Energy bulls insist supplies will remain tight and oil prices will likely be higher in 2023.
Variable dividends Lower oil prices are not just a threat to profits: many oil companies have instituted variable dividends, where the variable portion of the payouts are dependent on cash flow.
Companies with a variable dividend include Pioneer (PXD), ConocoPhillips (COP), Devon Energy (DVN), Diamondback Energy (FANG), and Coterra Energy (CTRA).
The downside: No one is sure what the total payout (the fixed dividend plus the "variable" dividend) will be from quarter to quarter.