Today I opened a position in Chevron. I purchased 10 shares at $121.47 giving my
portfolio it's 20th position. Chevron has been under some selling pressure as it approached their 2nd quarter earnings and continued to drop after a disappointing 2nd quarter due mostly from lower realized international liquids pricing. Since then the stock has dropped about $5 which doesn't exactly make it undervalued but I think it's fairly valued at this point and in this market that's not bad. Chevron has increased its dividend for 26 consecutive years, making it a
dividend champion,
i.e. more than 24 years of consecutive increases. It's strong companies that have a serious commitment to their dividend that I strive to hold in my portfolio and I think Chevron exemplifies that.
Chevron is involved in virtually every facet of the energy industry. From exploration to production and transportation of crude oil and natural gas as well as refining ,
marketing and distribution of transportation fuels and lubricants. Chevron generates power, produces geothermal
energy, provides renewable energy, manufactures
and sells petrochemical products and energy efficiency solutions.
CVX Basic Statistics
- Ticker Symbol: CVX
- PE Ratio: 9.93
- Yield: 3.3%
- Dividend Growth 10yr: 9.6%
- Payout Ratio: 30%
- Market cap: $237 B
- Website: http://www.chevron.com
Great call. I have my eye on Chevron as well and have been tempted to pull the trigger to initiate a position lately. Very attractively valued at current levels.
ReplyDeleteIt's even more so now that the overall market has been tanking. Of course I wish I woulda waited a few days to buy now but I don't think it will matter much in ten or twenty years.
DeleteGood buy, great yield on an average p/e (5 year range looks to be a low of 5 to a high of 15). I divested a bit of XOM the other day and looked at Chevron but ultimately went with KMI and BBEP...although I expect to start a position in Chevron sometime this year. Definitely a solid DGI component.
ReplyDeleteYa I noticed you mention that the other day. Holding 32% in one stock is very risky, and at the very least stressful. Good call on the redistribution of those funds. I'm not familiar with BBEP but I know KMI/KMP is quite popular with a lot of GDI's.
DeleteI need to do a follow up post about it soon. BBEP is a bit of a spec play, i'll admit. I think it is a solid company but it doesn't not meet many of my entry criteria...There are another 2-4 companies that I want to 'spec' but don't feel comfortable until the pillars of my DGI portfolio are set..hopefully soon.
DeleteThank you very much for your article, very good. It has helped me to know much better Chevron, company seriously i wont add it to my portfolio and had not hitherto much knowledge of it.
ReplyDeleteThe dividend growth is quite impressive and the yield above 3% allows me to invest. Looks like a good stock. Thanks for bringing it up. I checked my watch list and guess what? It wasn't there! So I added CVX to my watch list.
ReplyDeleteHey Martin, your absolutely right on target. That dividend yield combined with rising dividend growth near 10% one reason why CVX is on so many DGI's watch lists.
DeleteGreat company and great pickup. I would consider purchasing CVX at 121 because I think this company is worth slightly more than that. I agree that it's not a steal, but I'm pretty sure you'll be glad to own a piece of this business when they do a dividend increase next year!
ReplyDeleteWonder if CVX has plans to do a stock split?