Chevron is a Dividend Aristocrat and therefore is most likely well known to most dividend growth investors. In fact many of those investors, like myself, will already have a position in this stock. Chevron Corp has been raising its dividend annually for the last 26 years and I expect it to continue to raise it for many years into the future.
So by looking at the fundamentals of the company will only bring an investor to the conclusion that this is a great company. And most investors knew that already. The key for me is looking at the technicals for entry points.
This stock has the potential to return over 15% on investment over the next year and to increase its dividend over and over again in the years ahead. With a payout ratio of less than 40%, a 5yr dividend growth rate of 9%, and a 3yr dividend growth rate of 10%, Chevron will not only preserve your purchasing power, it will actually increase your purchasing power in the years ahead.
Chevron Corporation (CVX), through its subsidiaries, is engaged in petroleum, chemicals, mining, power generation, and energy operations worldwide. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, and production of crude oil and natural gas; liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and processing, transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil and refined products; transporting crude oil and refined products through pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing commodity petrochemicals and fuel and lubricant additives, as well as plastics for industrial uses. Chevron Corporation is also involved in coal and molybdenum mining operations; cash management and debt financing activities; insurance operations; real estate activities; and energy services, and alternative fuels and technology businesses. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California. (Daily Chart) (Weekly Chart)
1yr Target $133.31
1yr Cap Gain 12.21%
1yr Est Tot Return 15.81%
Market Cap $224.58 Bil
EPS (ttm) $10.86
Payout Ratio 39.41%
EPS next yr $9.67
Forward P/E 12.29
Sales $212.37 Bil
Income $20.70 Bil
Profit Margin 9.74%
Chevron, the Dollar and the Price of Oil, dated 7 October 2014.
Chevron - When High is Too High, 25 June 2014.
Chevron and ExxonMobil, 30 May 2014.