Chevron (CVX) Dividend Machine for week of June 25, 2012
Chevron, symbol CVX, is a wonderful dividend machine. Just look at the fundamentals presented below to see how CVX performs on our four key dividend machine criteria. Earnings over the past four quarters have been a robust $13.62 per share; paid dividends were $3.30 per share. At today’s stock price of about $98.90 the dividend yield is 3.64%. CVX just raised the quarterly dividend from $.81 per share to $.90 per share. CVX has raised the dividend every year for 19 years; moreover, this company performs like this with only a 3% D/E ratio.
CHEVRON Fundamentals | |
Price when profiled | $98.90 |
Last 4 Qtrs Earnings | $13.62 |
Last 4 Qtrs Dividend | $3.30 |
Current Dividend Yld | 3.64 |
No. of Years increased | 19 |
Debt/Equity ratio | 3.00% |
Chevron is one of my favorite dividend machines because the stock is volatile enough that covered call income is often available. If you wrote a September 22, 2012 call with a strike price of $110 your income from the call would be $.54 a share. That call income adds over one half of a percent to the 3.64% dividend yield. This boosts your income from Chevron to over 4% for 2012. With Chevron’s stock price being so volatile, you just might sell the stock to the call buyer for a nifty 11.77% gain or you might keep it and write another call later in the year.
CALL OPTION CVX | |
Cost Basis | $98.90 |
Strike Price | $110.00 |
Call Premium | $0.54 |
Dividend | |
Gain in $ if assigned | $11.64 |
Call Yield | 0.55% |
Gain Yield | 11.77% |
If the buyer of your call does not take your stock before the expiration date of September 22, 2012, you should also receive the quarterly dividend of $.90. The return looks even sweeter as is noted in the table below.
CALL OPTION CVX | |
Cost Basis | $98.90 |
Strike Price | $110.00 |
Call Premium | $0.54 |
Dividend | $0.90 |
Gain in $ if assigned | $12.54 |
Call Yield | 0.55% |
Gain Yield | 12.68% |
Consider Chevron as a dividend machine for the income producing portion of your portfolio.
Very Truly Yours,
TheMoneyMadam
A few of my previous posts on CVX. You can also search to read all CVX related posts.
http://www.themoneymadam.com/2011/01/dividend-machine-chevron-cvx-11-of-52.html
http://www.themoneymadam.com/2011/10/chevron-symbol-cvx-dividend-machine.html
http://www.themoneymadam.com/2011/12/chevron-and-darden-call-income.html
A few of my previous posts on CVX. You can also search to read all CVX related posts.
http://www.themoneymadam.com/2011/01/dividend-machine-chevron-cvx-11-of-52.html
http://www.themoneymadam.com/2011/10/chevron-symbol-cvx-dividend-machine.html
http://www.themoneymadam.com/2011/12/chevron-and-darden-call-income.html
