Monday, January 20, 2014

Dividends & Income 2014 Dividend Machine Consideration Chevron CVX

I came across the next 2014 Dividend Machine consideration when I was catching up on my stock investment reading.   I read a lot of articles about dividend stocks.  Sometimes I agree with them, sometimes not.   Often times I learn something.  

A number of articles have been published about the energy sector.  Things are changing in that sector.   Chevron has been best of breed in the energy sector for some time and many analysts try to analyze if Chevron (CVX) will continue to be a good dividend investment.  

This post applies my Dividend Machine strategy to determine how to invest in Chevron.

Chevron Current Value

Chevron’s stock price is under a little pressure.  Enough pressure that the dividend is closing in on 3.5%.  The yield using Friday’s (1/17/2014) closing stock price of $119.29 is only 3.35%.   To be included in the 2014 portfolio, Chevron (CVX) needs to yield 3.5%.  In order to yield 3.5% at the current dividend level, you would have to buy CVX at $114 or better.   

Chevron Dividend Machine Fundamentals

The table below presents Chevron’s Dividend Machine bona fides.  Like the two other stocks I have under consideration, this stock is very close to being a perfect Dividend Machine.

I am going to add CVX to my watch list.  I am already long CVX at a much lower basis.   Here are the links to previous posts on Chevron. 

I also have sold calls for additional income.   When a call comes up that I think is valuable, I will post it.

Consider Chevron (CVX) for the income producing portion of your portfolio.