Looking for Passive Income? Why You Won't Want to Miss Chevron's 4.5%-Yielding Dividend.
Chevron (NYSE: CVX) has been a fantastic income stock over the years. The oil giant recently extended its dividend growth streak to 38 straight years. That's a rare feat, considering that only about 80 publicly traded companies in the U.S. have delivered 35 or more years of dividend increases. Chevron's track record is even more impressive because it operates in the volatile oil sector. The oil industry's volatility can scare off some income investors. However, Chevron has proven that it pays a durable dividend that can withstand the oil sector's wild swings. The company is in an excellent position to continue increasing its high-yielding dividend (a 4.5% current yield compared to 1.2% for the S&P 500) in the future. Because of that, income-seeking investors won't want to overlook Chevron's payout. Chevron operates a globally integrated energy business. It produces oil and gas (upstream), manages midstream energy infrastructure to transport, process, and store some of its production, and owns downstream chemicals and refining assets. This strategy helps Chevron maximize the value of its production and acts as a natural hedge against commodity price fluctuations (downstream businesses benefit from lower prices). As a result, Chevron produces steadier cash flow than peers focused solely on the upstream segment of the oil market. Continue reading
Chevron (NYSE: CVX) has been a fantastic income stock over the years. The oil giant recently extended its dividend growth streak to 38 straight years. That's a rare feat, considering that only about 80 publicly traded companies in the U.S. have delivered 35 or more years of dividend increases. Chevron's track record is even more impressive because it operates in the volatile oil sector.
The oil industry's volatility can scare off some income investors. However, Chevron has proven that it pays a durable dividend that can withstand the oil sector's wild swings. The company is in an excellent position to continue increasing its high-yielding dividend (a 4.5% current yield compared to 1.2% for the S&P 500) in the future. Because of that, income-seeking investors won't want to overlook Chevron's payout.
Chevron operates a globally integrated energy business. It produces oil and gas (upstream), manages midstream energy infrastructure to transport, process, and store some of its production, and owns downstream chemicals and refining assets. This strategy helps Chevron maximize the value of its production and acts as a natural hedge against commodity price fluctuations (downstream businesses benefit from lower prices). As a result, Chevron produces steadier cash flow than peers focused solely on the upstream segment of the oil market.
