Chevron Corporation (CVX) is the newest dividend champion. Today it announced it has raised its dividend 11.1% to $.90 per quarter. This marks an impressive 25 year streak of dividend increases. Dividend growth of 11.1% by itself is awesome, but it gets even better because CVX has tended to make multiple increases in recent years. These increases have already boosted my yield on cost to over 4%. With a payout ratio of only 26.8%, there is plenty of room for future dividend boosts.
I simply love CVX. It's a solid play on energy, now with 25 years of increases. 11.1% is actually pretty solid when you look at what a lot of other companies have done so far in 2012. Good stuff!
ReplyDeleteBest wishes.
11.1% is a huge number especially for a stock that yields over 3% and last raised its dividend only 6 months ago. I really hope Chevron continues raising the dividend twice a year. I know they can't do it forever, but it's awesome while it lasts. I noticed XOM had a monster increase today, over 20% o.O
DeleteCI
I was very pleased to see CVX become a Dividend Champion today. It will indeed be awesome if they do another increase later this year.
ReplyDeleteApril has been a fantastic month for blue chip dividend growth stocks. The length of these streaks is really amazing when you think about it. In my mind it speaks volumes on how these companies treat shareholders.
DeleteThing is that their share price is quit low, this is why their yield is so good. But don't get to excited, this is due to high oil price. If it goes down so will the profit and later dividends. Will analyse CVX soon to have a look what is going on there. As my last research showed their profitability and evaluation was the best.
ReplyDeleteBy the way same thing with exxon mobile. Also good share price but decreasing earnings. Well in long term yes this could be a good time to purchase these shares since oil industry is not going to go away i think in near 10 or 20 years. Unless oil price will rise something to 200-300$/barrel
DeleteFA,
DeleteI think you got it right, I agree with your assessment. In my mind the major oil companies might peter out sometime in the next 50 years unless they can find more reserves. It's too far in the future to know for sure, we can only guess. Like you say, they should be good for the next 10-20 years. I bet more reserves will be found or new technology will be developed to reach additional sources. In the meantime I will hold oil stocks and collect the dividends.