Chevron Corporation is an integrated oil company so it makes money in both the upstream and down stream sides of the business. As the price of oil increases, the upstream operations (exploration and production) make a lot of money as they find and drill for oil and gas. As the price of oil decreases, the down stream operations (refining) make a lot of money as their costs fall. By being in both areas, Chevron is in a great position to make a lot of money.
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.
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.
Daily Chart Chevron Corp's recent low of $106.65 along with the MACD deep in the negative numbers and turning up was an obvious signal that the company was over sold and reversing. Confirmation by a rising RSI from an over sold position and a reversing ADX would have easily gotten in the astute investor below $112. Luckily I bought additional shares between $107 and $109. Today with the stock sitting at $118.80 it's not quite the bargain it was just a couple of weeks ago, but with the expectation that the stock will move higher it's not too late to accumulate here. And that's exactly what I'm continuing to do.
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.
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.
The Company
| 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) | 9 November Price $118.80 1yr Target $133.31 Analysts 21 1yr Cap Gain 12.21% Dividend $4.28 Yield 3.60% 1yr Est Tot Return 15.81% Market Cap $224.58 Bil Beta 1.17 EPS (ttm) $10.86 Payout Ratio 39.41% EPS next yr $9.67 P/E 10.84 PEG 1.90 Forward P/E 12.29 Debt/Equity 0.15 ROA 8.10% ROE 13.80% ROI 7.90% Sales $212.37 Bil Income $20.70 Bil Profit Margin 9.74% |
Live Interactive Chart
Additional Articles of Interest.
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.
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.
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