CVX signs a 20-year LNG purchase deal with Energy Transfer for the Lake Charles terminal, securing 2 million metric tons annually.
The election results bring a new phase for the economy. While inflation has eased, prices remain high, and tackling them will be a challenge for President Trump. Despite rising bond yields and a tough economic environment, the market presents opportunities, especially in high-quality dividend stocks outside of tech's dominance. The market's current challenges create an ideal environment for strategic stock-picking, particularly in dividend growth stocks that come with moats, pricing power, healthy balance sheets, and stability.
Energy Transfer (ET 3.23%) has long sought to convert its existing Lake Charles LNG import and regasification facility to a liquified natural gas (LNG) export terminal. It started working on that project about a decade ago.
A couple of years ago, oil prices soared following Russia's invasion of Ukraine, and producers capitalized on the opportunity. With profits at their peak, companies like Chevron (CVX 1.20%) used that windfall to pay down debt and reward shareholders with generous dividends and massive share buybacks.
The dividend yield of the S&P 500 has decreased in recent years due to the dominance of growth stocks in the index and stock prices outpacing dividend growth rates. With the index now yielding just 1.3%, investors looking for stocks to boost their passive income stream may want to consider higher-yielding options.
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I've been steadily buying shares of Chevron (CVX 1.20%) over the past couple of years. The main driver is the oil giant's high-yielding dividend, which provides me with a growing passive income stream.
Considering the Permian Basin's strategic significance to the U.S. oil production, keeping an eye on XOM, FANG and CVX is not just wise - it's essential.
Chevron's consistent strategy and focus on oil and gas have led to superior performance and strong dividend growth, making it a standout among supermajors. Unlike rivals Shell and BP, Chevron avoids the "valley of death" by not wavering between fossil fuels and renewables, maintaining a clear "molecules" strategy. Recent acquisitions like PDC Energy and Renewable Energy Group enhance Chevron's portfolio, aligning with its high returns, low carbon approach.
Australia's Woodside Energy said on Thursday it had entered into a deal with Chevron to exchange stakes in a number of energy projects, with the U.S. oil and gas giant making a cash payment of up to $400 million to Woodside.
Oil giant Chevron (CVX -1.36%) is a favorite among yield-seeking investors. Its 4.2% dividend yield, 37-year history of raising its dividend annually, and cash-gushing business give investors confidence it can reward them with significant passive income in the coming years.
Chevron's share price has been underperforming the market over the past year, but this is not bothering me. The stock is attractively priced and production is growing at healthy levels, which reduces the dividend risk. Drill, baby, drill plan has been a major risk for Oil & Gas companies, but the recent announcement by Chevron's management has dispelled these fears.