Chevron and Southern Company Attract Retiree Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Chevron Dividend Increase: Chevron recently announced a 4% increase in its quarterly dividend to $1.78 per share, yielding approximately 4.1%, extending its streak of consecutive annual increases to 39 years, which appeals to long-term investors.
- Strong Financial Performance: The company's cash flow from operations totaled $33.9 billion over the past year, up from $31.5 billion the previous year, demonstrating Chevron's ability to adapt and maintain financial strength under various economic conditions.
- Southern Company Dividend Raise: Southern Company announced a $0.02 increase in its quarterly dividend to $0.74, which, while a modest hike of under 3%, extends its dividend growth streak to 24 years, reflecting its stable earnings capacity.
- Stable Investment Choice: Serving 9 million customers, Southern Company boasts consistent demand for energy services, with profit margins typically exceeding 15%, and a low beta of 0.45 indicates low volatility, making it a solid option for retirees.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVX is 176.95 USD with a low forecast of 158.00 USD and a high forecast of 206.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 181.230
Low
158.00
Averages
176.95
High
206.00
Current: 181.230
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Chevron Stock Rises on Oil Price Rebound
- Oil Price Rebound: In January, WTI oil prices surged by 14% and Brent by 16%, marking the first monthly gain in six months, which propelled Chevron's stock to rise by 16.1%, significantly outperforming the S&P 500's 1.4% increase, indicating a positive impact on the company's profitability from rising oil prices.
- Supply Concerns Drive Prices: The U.S. capture of former Venezuelan President Maduro on narcoterrorism charges could disrupt oil flows from the country, coupled with escalating tensions with Iran, which further exacerbates market concerns over oil supply, thus driving prices higher.
- Strong Earnings Support: Chevron reported robust fourth-quarter results last month, with production volumes hitting record highs due to the Hess acquisition and expansion projects, leading to higher operating cash flow and industry-leading free cash flow growth, despite a decline in earnings compared to 2024.
- Ongoing Growth Strategy: Chevron made significant strides in its growth strategy, including completing the Hess acquisition, launching the Geismar renewable diesel plant, and making a Final Investment Decision on the Leviathan gas expansion project offshore Israel, expected to be completed by the end of the decade, enhancing its long-term growth outlook.
See More
Chevron and Southern Company Attract Retiree Investors
- Chevron Dividend Increase: Chevron recently announced a 4% increase in its quarterly dividend to $1.78 per share, yielding approximately 4.1%, extending its streak of consecutive annual increases to 39 years, which appeals to long-term investors.
- Strong Financial Performance: The company's cash flow from operations totaled $33.9 billion over the past year, up from $31.5 billion the previous year, demonstrating Chevron's ability to adapt and maintain financial strength under various economic conditions.
- Southern Company Dividend Raise: Southern Company announced a $0.02 increase in its quarterly dividend to $0.74, which, while a modest hike of under 3%, extends its dividend growth streak to 24 years, reflecting its stable earnings capacity.
- Stable Investment Choice: Serving 9 million customers, Southern Company boasts consistent demand for energy services, with profit margins typically exceeding 15%, and a low beta of 0.45 indicates low volatility, making it a solid option for retirees.
See More
Turkey's TPAO and Chevron Sign Joint Exploration Agreement
- Agreement Signing: Turkey's state-run TPAO and Chevron have signed an agreement to jointly explore and produce oil and gas in the Black Sea and Mediterranean, marking a significant deepening of energy cooperation between the two nations.
- Production Potential: The Turkish Energy Minister stated that this collaboration could enable TPAO to achieve an oil production rate of 1 million barrels per day, significantly enhancing Turkey's position and influence in the global energy market.
- U.S. Corporate Involvement: This agreement exemplifies the increasing collaboration between Turkish and U.S. energy companies, as TPAO recently signed a memorandum of understanding with Exxon Mobil's Esso unit for offshore energy exploration, highlighting the close ties in the energy sector.
- Strategic Implications: By partnering with Chevron, TPAO not only boosts its production capacity but also leverages U.S. technology and expertise, promoting Turkey's energy independence and sustainable development.
See More
Stable Dividend Stocks: Verizon and Chevron
- Verizon Dividend Increase: Verizon raised its dividend to $0.69 per share, marking the potential for its 20th consecutive year of increases, with a current yield of 6.2%, significantly higher than the S&P 500 average, enhancing investor confidence.
- Strong User Growth: Verizon added nearly 1 million net additions in its latest quarter, the best performance since 2019, and expects phone net additions to grow 2-3 times by 2026, further driving earnings and cash flow growth.
- Chevron Dividend Boost: Chevron increased its dividend by 4% to $1.78 per share in January, with a yield of 4.03%, and has now raised its dividend for 39 consecutive years, demonstrating financial stability and reliability.
- Financial Health: Chevron reported $5.5 billion in free cash flow in Q4, with a debt-to-equity ratio of 0.21, one of the lowest in the industry, indicating the company's ability to sustain its dividend payments despite challenges from fluctuating oil prices.
See More
Verizon and Chevron's Dividend Growth Prospects
- Verizon Dividend Increase: Verizon raised its dividend to $0.69 per share, marking its 20th consecutive year of increases, with a current yield of 6.2%, which is six times higher than the average yield of the S&P 500, showcasing its stability and appeal in volatile markets.
- Chevron Dividend Boost: Chevron increased its dividend by 4% to $1.78 per share in January, and while its yield stands at 4.03%, its 39 consecutive years of dividend increases attest to its financial robustness, despite challenges from falling oil prices and a one-time pension hit.
- Financial Health: Verizon added nearly 1 million net additions in its latest quarter, with expectations of 4% to 5% growth in earnings per share and a 7% increase in free cash flow by 2026, indicating that the company can not only maintain its dividend but also deliver solid returns.
- Chevron Production Growth: Chevron has increased production globally, particularly in the U.S., which is expected to boost revenue and offset price declines, and its strong financials, highlighted by a low debt-to-equity ratio of 0.21, position it well to continue supporting dividend payments.
See More
U.S. Intensifies Competition in Critical Minerals Sector
- Critical Minerals Strategy: The U.S. government has prioritized critical minerals as a national security issue, launching a strategic stockpile initiative called 'Project Vault' aimed at enhancing supply chain control for electric vehicles and defense systems, thereby elevating the nation's position in global competition.
- Geopolitical Implications: The intensifying competition between the U.S. and China in the critical minerals sector, particularly in rare earths where China holds about 70% of the global market share, necessitates increased U.S. focus on countries like Colombia, Mexico, and Venezuela to secure resource supply chains.
- Market Volatility Expectations: While the market has largely shrugged off geopolitical tensions, investors remain optimistic about fiscal stimulus and strong earnings growth, anticipating continued volatility, especially in the critical minerals and alternative investment sectors.
- Investment Opportunities: Following the surge in rare earth mining stocks due to the critical minerals stockpile announcement, investors are encouraged to directly invest in commodities rather than related companies to achieve purer market exposure, indicating a growing interest in mining and alternative investments.
See More
Chevron Stock Rises on Oil Price Rebound
- Oil Price Rebound: In January, WTI oil prices surged by 14% and Brent by 16%, marking the first monthly gain in six months, which propelled Chevron's stock to rise by 16.1%, significantly outperforming the S&P 500's 1.4% increase, indicating a positive impact on the company's profitability from rising oil prices.
- Supply Concerns Drive Prices: The U.S. capture of former Venezuelan President Maduro on narcoterrorism charges could disrupt oil flows from the country, coupled with escalating tensions with Iran, which further exacerbates market concerns over oil supply, thus driving prices higher.
- Strong Earnings Support: Chevron reported robust fourth-quarter results last month, with production volumes hitting record highs due to the Hess acquisition and expansion projects, leading to higher operating cash flow and industry-leading free cash flow growth, despite a decline in earnings compared to 2024.
- Ongoing Growth Strategy: Chevron made significant strides in its growth strategy, including completing the Hess acquisition, launching the Geismar renewable diesel plant, and making a Final Investment Decision on the Leviathan gas expansion project offshore Israel, expected to be completed by the end of the decade, enhancing its long-term growth outlook.
See More
Chevron and Southern Company Attract Retiree Investors
- Chevron Dividend Increase: Chevron recently announced a 4% increase in its quarterly dividend to $1.78 per share, yielding approximately 4.1%, extending its streak of consecutive annual increases to 39 years, which appeals to long-term investors.
- Strong Financial Performance: The company's cash flow from operations totaled $33.9 billion over the past year, up from $31.5 billion the previous year, demonstrating Chevron's ability to adapt and maintain financial strength under various economic conditions.
- Southern Company Dividend Raise: Southern Company announced a $0.02 increase in its quarterly dividend to $0.74, which, while a modest hike of under 3%, extends its dividend growth streak to 24 years, reflecting its stable earnings capacity.
- Stable Investment Choice: Serving 9 million customers, Southern Company boasts consistent demand for energy services, with profit margins typically exceeding 15%, and a low beta of 0.45 indicates low volatility, making it a solid option for retirees.
See More
Turkey's TPAO and Chevron Sign Joint Exploration Agreement
- Agreement Signing: Turkey's state-run TPAO and Chevron have signed an agreement to jointly explore and produce oil and gas in the Black Sea and Mediterranean, marking a significant deepening of energy cooperation between the two nations.
- Production Potential: The Turkish Energy Minister stated that this collaboration could enable TPAO to achieve an oil production rate of 1 million barrels per day, significantly enhancing Turkey's position and influence in the global energy market.
- U.S. Corporate Involvement: This agreement exemplifies the increasing collaboration between Turkish and U.S. energy companies, as TPAO recently signed a memorandum of understanding with Exxon Mobil's Esso unit for offshore energy exploration, highlighting the close ties in the energy sector.
- Strategic Implications: By partnering with Chevron, TPAO not only boosts its production capacity but also leverages U.S. technology and expertise, promoting Turkey's energy independence and sustainable development.
See More
Stable Dividend Stocks: Verizon and Chevron
- Verizon Dividend Increase: Verizon raised its dividend to $0.69 per share, marking the potential for its 20th consecutive year of increases, with a current yield of 6.2%, significantly higher than the S&P 500 average, enhancing investor confidence.
- Strong User Growth: Verizon added nearly 1 million net additions in its latest quarter, the best performance since 2019, and expects phone net additions to grow 2-3 times by 2026, further driving earnings and cash flow growth.
- Chevron Dividend Boost: Chevron increased its dividend by 4% to $1.78 per share in January, with a yield of 4.03%, and has now raised its dividend for 39 consecutive years, demonstrating financial stability and reliability.
- Financial Health: Chevron reported $5.5 billion in free cash flow in Q4, with a debt-to-equity ratio of 0.21, one of the lowest in the industry, indicating the company's ability to sustain its dividend payments despite challenges from fluctuating oil prices.
See More
Verizon and Chevron's Dividend Growth Prospects
- Verizon Dividend Increase: Verizon raised its dividend to $0.69 per share, marking its 20th consecutive year of increases, with a current yield of 6.2%, which is six times higher than the average yield of the S&P 500, showcasing its stability and appeal in volatile markets.
- Chevron Dividend Boost: Chevron increased its dividend by 4% to $1.78 per share in January, and while its yield stands at 4.03%, its 39 consecutive years of dividend increases attest to its financial robustness, despite challenges from falling oil prices and a one-time pension hit.
- Financial Health: Verizon added nearly 1 million net additions in its latest quarter, with expectations of 4% to 5% growth in earnings per share and a 7% increase in free cash flow by 2026, indicating that the company can not only maintain its dividend but also deliver solid returns.
- Chevron Production Growth: Chevron has increased production globally, particularly in the U.S., which is expected to boost revenue and offset price declines, and its strong financials, highlighted by a low debt-to-equity ratio of 0.21, position it well to continue supporting dividend payments.
See More
U.S. Intensifies Competition in Critical Minerals Sector
- Critical Minerals Strategy: The U.S. government has prioritized critical minerals as a national security issue, launching a strategic stockpile initiative called 'Project Vault' aimed at enhancing supply chain control for electric vehicles and defense systems, thereby elevating the nation's position in global competition.
- Geopolitical Implications: The intensifying competition between the U.S. and China in the critical minerals sector, particularly in rare earths where China holds about 70% of the global market share, necessitates increased U.S. focus on countries like Colombia, Mexico, and Venezuela to secure resource supply chains.
- Market Volatility Expectations: While the market has largely shrugged off geopolitical tensions, investors remain optimistic about fiscal stimulus and strong earnings growth, anticipating continued volatility, especially in the critical minerals and alternative investment sectors.
- Investment Opportunities: Following the surge in rare earth mining stocks due to the critical minerals stockpile announcement, investors are encouraged to directly invest in commodities rather than related companies to achieve purer market exposure, indicating a growing interest in mining and alternative investments.
See More
