Dow Dividend Checkup: Chevron
Jun 12th 2012 7:09PM
Updated Jun 12th 2012 7:10PM
The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves discusses topics across the investing world. Over the past several weeks we've been looking at each of the components of the Dow Jones Industrial Average and subjecting each of them to a dividend checkup. Today, we're looking at Chevron. It was recently named a Top 25 Dividend Giant by the ETF Channel, and this designation is well deserved. It just raised its dividend by 11%, and it's increased its dividend each year for the past 25 years. Its yield is very strong at 3.60%, which compares very well with the average for the Dow Jones Industrial Average of approximately 3.00%. Competitors ExxonMobil and ConocoPhillips pay 2.80% and 4.90%, respectively. This is a very shareholder-friendly company. After raising its dividend recently, the company's CEO said he was very confident in the company's growth prospects. Over the past two years, it has been able to outperform the Dow as well as peers ExxonMobil, ConocoPhillips, and BP. Over the long haul, John likes this one, though it may be hurt in the short term if oil prices continue to decline.
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At the time this article was published John Reeves has no positions in the stocks mentioned above. The Motley Fool owns shares of ExxonMobil. Motley Fool newsletter services recommend Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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