Most oil companies have been hit hard by low crude prices. The majors, however, have mitigated some of the impact due to diversified business lines and low costs of production. Still, Chevron (CVX) has underperformed its similarly sized peers such as Exxon (XOM), Royal Dutch Shell (RDS.A)(RDS.B), and BP (BP) over the past 12 months.
Unless you’re anticipating a big oil correction back to the likes of >$80, it’s tough to believe that Chevron is capable of growing overall shareholder value. Sure the company may skimp on future spending or sell of some assets to support the dividend, but investors will surely hurt overall. Management is currently setting up the business for a reversal in oil prices. If you’re invested in the company, you better expect the same.
Source: Guru Focus
Related Articles:
- 5 Lessons Learned About Investing In Dividend Growth Stocks
- 6 High-Yielding Mega-Cap Stocks
- Dividend Investors Should Focus On Stocks, Not The Market
- The Secret Ingredient of Dividend Growth Stocks
- Stocks Providing Positive Feedback With Increased Dividends
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Though the market has only risen slightly this year, with the S&P 500 up about 1% year to date, stocks are still up significantly over l...
-
First, identify stocks with yields higher than average in the S&P 500. The average yield is around 2%, and with Treasuries offering just...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
This stock has a strong, diversified MOB portfolio that will throw off more cash in the future as aging trends and higher healthcare spendin...
-
A friend of mine used to joke that she was looking for Mr. Right, but all she ever found was Mr. Right Now. Luckily for investors, when it c...
-
Income investors are no strangers to real estate. By being a successful landlord, an investor can collect a steady stream of monthly rental ...
-
Few people have made more money in oil than T. Boone Pickens. The billionaire oil tycoon grew up in Oklahoma during the Great Depression. Fr...
-
Long-term investors know that dividends can have a major impact on returns over time. When the stock market is struggling to make gains like...
-
Income investors looking for solid dividend stocks often stick with more stable and proven companies -- and that's a winning strategy, t...
-
With interest rates rising, income-seeking investors have more options to choose from as bank CDs and government bonds are paying more now t...
0 comments
Post a Comment
Post a Comment