Chevron Corporation (CVX) just declared $1.12 quarterly dividend. This is an increase of 3.7% from $1.08.
I own 31 shares, so this will increase my annual dividend income by $4.96 to a total of $4,722.96
I updated both my Passive Income page as well as my Portfolio page to reflect the changes.
My Thoughts:
This was another unexpected but pleasant increase from Chevron. The last increase was only 0.9% in October 2016. Before that increase, it took the company eight quarters straight to announce an increase.
Currently, the dividend payout stands at 126% which is not a good thing. The one saving factor that is going to help Chevron is the future earnings growth. The future earning growth will bring down the dividend payout ratio. CFRA has a 3-year earning prediction of a whopping 20% for the company. This kind of growth will definitely bring the payout ratio back to manageable and safe level.
I find that Chevron to be expensive with a current PE of 34.11; however, it does have a forward PE of 18.40. Even though the forward PE looks great, I give this stock a HOLD recommendation.
I currently have a significant position with this company, and I will only buy more shares if there is a significant drop in price.
Source: fastgraphs.com
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FV –
Loved seeing the increase and trek towards a normal growth rate, keep it coming!
-Lanny
Yes sir. Cvx is looking good for the next few years of growth
Hi Felix
I‘ve been shareholder of Chevron for some years now and like you I was very pleased and somewhat surprised to see that dividend increase. Chevron had a tough time, too many mega projects amid a oil price crash. LNG-Project Gorgon and so on will finally be fully operational. That‘s good in terms of revenues and requires less capital spendings. And an oil price above usd 55 helps furthermore.
All in all a very interesting company I like very much. Not as resilient as Royal Dutch Shell or ExxonMobil but I am pretty optimistic it will be doing fine over the medium run.
Cheers
Hi Financial Shaper, I am also a long time Chevron shareholder. It was one of the first company I bought when I started investing. I will continue to hold this company and I was really surprised with this nice increase. I expect more similar increases for years to come. Thanks for stopping by.