Chevron Corporation (CVX): Dividend Is Coming In 3 Days, Should You Buy?
Important news for shareholders and potential investors in Chevron Corporation (NYSE:CVX): The dividend payment of $1.08 per share will be distributed into shareholder on 11 December 2017, and the stock will begin trading ex-dividend at an earlier date, 16 November 2017. What does this mean for current shareholders and potential investors? Below, I will explain how holding CVX can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. See our latest analysis for CVX
5 checks you should do on a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is it the top 25% annual dividend yield payer?
Has it paid dividend every year without dramatically reducing payout in the past?
Has dividend per share amount increased over the past?
Does earnings amply cover its dividend payments?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
Does Chevron pass our checks?
The current payout ratio for CVX is 124.96%, which means that the dividend is not well-covered by its earnings. Looking forward, analysts expect CVX to pay out 71.86% of its earnings leading to a dividend yield of 3.76%. In addition to this, EPS should increase to $4.74. This means the company should be able to continue to payout dividends. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. In the case of CVX it has increased its DPS from $2.32 to $4.32 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes CVX a true dividend rockstar. Relative to peers, CVX has a yield of 3.69%, which is on the low-side for oil, gas and consumable fuels stocks.
What this means for you:
Are you a shareholder? With Chevron producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a robust dividend generator moving forward. However, depending on your portfolio composition, it may be beneficial exploring other income stocks to improve your diversification, or even look at high-growth stocks to supplement your steady income stocks. I suggest continuing your research by checking out my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? With this in mind, I definitely rank Chevron as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. As with all investments, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Another aspect to consider for CVX is how much it’s actually worth. Is CVX still a bargain? Check our latest free analysis to find out!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
