Superior dividends and great valuations: why investors should consider oil stocks

While the global oversupply of oil continues to weigh on crude prices and suppressed stock prices for oil companies, the sector offers attractive value to investors, experts argue.

"The sector has been underperforming, there's great value, so you have to play the sector," Beat Wittmann, partner at Swiss financial advisory Porta Advisors, told CNBC's Squawk Box on Wednesday.

"The sector is so attractive right now and it's a global demand-supply game."

Crude oil prices are stuck in the range of $45 to $60 a barrel, according to Wittmann, but he thinks there is great value in the stocks of the super major oil companies.

"They've cut costs and exploration programs. They've digested and readjusted balance sheets and quite frankly that investment case does not so much depend on if the oil price is at $50 or $60. They just look through that," he said.

Wittmann added that these oil companies offer superior dividend yields at great valuations and adds that the sector is attractive right now. Rather than picking any individual companies or geographical areas, he advised investors to play the sector as a whole.
--News from www.cnbc.com