| | | Grab At Least 6% Yield with These 2 Dividend Growers
Amit Singh - Barchart - 54 minutes ago
Dividends - Dividends dollars by MarkgrafAve via iStock
Investing in stocks that consistently increase dividend payouts can provide investors a reliable source of growing income over time. Further, a company's ability to regularly boost its dividends shows its solid financials and management’s confidence in future earnings.
Against this background, Verizon Communications (VZ) and TC Energy (TRP) stand out for their consistent history of dividend payments and growth. Moreover, these dividend growers offer high yields exceeding 6%. Their resilient earnings base suggests that these companies could keep increasing their dividends in the years ahead. Let’s take a closer look at these high-yield dividend stocks.
#1. Verizon StockVerizon (VZ) is a leading communications and technology player, providing data, video, and voice services. Recently, Verizon increased its quarterly dividend by 1.9% to $0.6775 per share. This brings its forward yield to over 6%, making it a compelling investment for investors to generate passive income.
 www.barchart.comWith this latest increase, Verizon has raised its dividend for 18 consecutive years. This consistency reflects the company’s ability to drive revenue growth from its wireless services, expand adjusted EBITDA, and generate strong free cash flow. Notably, in the first half of 2024 alone, Verizon paid nearly $5.6 billion in cash dividends, showcasing its solid financials and commitment to rewarding its shareholders.
Verizon continues to maintain its leadership in 4G and 5G wireless technologies, an area in which it has been heavily investing. The company’s deployment of new network architectures and technologies enhances its network quality and connectivity and provides a competitive advantage. Further, by focusing on monetizing its networks, platforms, and solutions, Verizon is effectively growing its customer base while improving its financial performance.
The company's wireless business remains a key driver of its growth. Verizon has consistently added broadband customers, with Q2 marking the eighth straight quarter of more than 375,000 broadband net additions. This signals Verizon’s continued strength in the broadband market, which should contribute to future earnings.
Management's strategy of reinvesting in its business, supporting its dividend, and managing its debt continues to position the company well for future growth. Further, Verizon is taking steps to accelerate its growth and expand its offerings. The company recently announced a $20 billion all-cash acquisition of Frontier, the largest fiber internet provider in the U.S. This acquisition will significantly broaden Verizon’s fiber network, enabling the company to offer advanced broadband services. It also opens up new opportunities for Verizon in digital innovations, including artificial intelligence (AI) and the Internet of Things (IoT).
Analysts currently rate Verizon stock a “Moderate Buy.”
 www.barchart.comOverall, the combination of a steady dividend, high yield, the company's leadership in wireless technology, and its strategic acquisitions makes Verizon an appealing long-term investment.
#2. TC Energy StockTC Energy (TRP) is known for its solid dividend growth history. This North American energy infrastructure company has raised its dividends at a CAGR of 7% in the last 24 consecutive years. This steady growth reflects TC Energy's solid asset base (including regulated and contracted assets) and its ability to capitalize on continued demand for energy infrastructure services.
 www.barchart.comThe company’s management focuses on maximizing the value and performance of its assets. In this regard, TC Energy announced the spinoff of its liquids Pipelines business, which will operate under the name South Bow. This initiative will divide TC Energy into two industry-leading entities, separating its Natural Gas Pipelines and Power and Energy Solutions businesses from its Liquids Pipelines segment. The move will help maximize the value of its assets and boost shareholder value.
TC Energy plans to concentrate its Power and Energy Solutions portfolio on nuclear generation and pumped hydro opportunities. It will also invest in emerging sectors such as carbon capture, utilization, and storage. These strategic investments will likely bolster TC Energy's competitive position and support future growth.
The company plans to place approximately $6-7 billion of assets into service each year, expanding its revenue base. Moreover, it continues to reduce debt through its asset divestiture program. It is also streamlining its business and focusing on efficiencies to boost earnings and support higher payouts.
Post-spinoff, TC Energy will continue building a regulated, low-risk portfolio to drive sustainable dividend growth. It will focus on utility-like assets with a strategy and portfolio mix to drive future earnings.
Thanks to the strength of its business model and a growing earnings base, TC Energy expects to continue to grow the dividend by 3-5% annually.
TRP stock has a “Moderate Buy” consensus rating, and offers a high yield of 6.2%.
 www.barchart.com
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On the date of publication, Amit Singh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
Here's What to Expect From Chevron Corporation's Next Earnings Report
Rashmi Kumari - Barchart - 1 hour ago
Energy - Chevron Corp_ HQ photo- by jewsyte via iStock
Based in San Ramon, California, Chevron Corporation ( CVX) is a fully integrated oil and gas company that engages in the exploration, production, storage, pipeline transportation, refining marketing, and distribution of oil and gas products. Valued at a market cap of $279.1 billion, the company is expected to announce its fiscal Q3 earnings results before the market opens on Friday, Nov. 1.
Ahead of this event, analysts project the energy company to report a profit of $2.80 per share, down 8.2% from $3.05 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in two of the last four quarters while missing on other two occasions.
In Q2, the company reported an EPS of $2.55, which missed the consensus estimates by 11.5%. Lower margins on refined product sales and adverse foreign currency effects primarily drove the weaker-than-expected performance.
For fiscal 2024, analysts expect CVX to report an EPS of $11.09, down 15.5% from $13.13 in fiscal 2023.
 www.barchart.comShares of CVX have gained 1.3% on a YTD basis, significantly underperforming both the S&P 500 Index's ( $SPX) 22.6% surge and the Energy Select Sector SPDR Fund’s ( XLE) 10.4% return over the same period.
 www.barchart.comOn Oct. 7, Chevron Canada Limited, an indirect subsidiary of CVX, announced a definitive agreement to sell a few of its critical assets to Canadian Natural Resources Limited ( CNQ) for $6.5 billion. The sale aligns with CVX's objective to sell off between $10 billion and $15 billion in assets by 2028 to improve its operational efficiency and financial health.
On Aug. 2, shares of CVX fell 2.7% after its Q2 earnings release. The company’s revenue increased 4.7% year over year to $51.18 billion, surpassing the Wall Street estimates of $50.78 billion. However, its 17.2% decline in adjusted EPS might have hurt investor confidence.
Analysts' consensus view on Chevron Corporation’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 21 analysts covering the stock, 12 recommend a "Strong Buy," two suggest a "Moderate Buy," and seven indicate a “Hold.” This configuration is slightly less bullish than three months ago, with 13 analysts suggesting a "Strong Buy."
CVX’s average analyst price target is $168.80, indicating an 11.6% potential upside from the current levels.
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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
Crude Prices Decline on Dollar Strength and Chinese Energy Demand Concerns
Rich Asplund - Barchart - Mon Oct 14, 10:30AM CDT
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Nov WTI crude oil ( CLX24) today is down -1.39 (-1.84%), and Nov RBOB gasoline ( RBX24) is down -4.18 (-1.94%).
Crude oil and gasoline prices today are moderately lower. Today's rally in the dollar index ( DXY00) to a 2-month high is undercutting energy prices. Also, concerns about Chinese energy demand are weighing on crude prices after China's Finance Ministry failed to give specifics about additional stimulus measures on Saturday. Losses in crude are limited after the S&P 500 rallied to a new record high, which shows confidence in the economic outlook that supports energy demand and crude prices. Also, heightened Middle East tensions are underpinning crude prices on concern an escalation of hostilities could lead to a disruption of the region's crude supplies.
Weaker-than-expected trade news from China negatively affects global growth and energy demand prospects. China Sep exports rose +2.4% y/y, weaker than expectations of +6.0% y/y. Also, Sep imports rose +0.3% y/y, weaker than expectations of +0.8% y/y.
Crude prices have support from the possibility that Israel might retaliate against Iran for its missile attack on Israel on October 1 Israel by bombing Iran's oil facilities. Goldman Sachs said Brent crude could surge to $90 a bbl if oil exports from Iran are disrupted. Also, JPMorgan Chase said that given the low level of global oil inventories, the odds favor a sustained geopolitical premium in crude prices until the conflict between Israel and Iran is resolved.
An increase in crude oil held worldwide on tankers is bearish for prices. Vortexa reported today that crude oil stored on tankers that have been stationary for at least seven days rose by +24% w/w to 58.58 million bbl in the week ended October 11.
A bearish factor for crude oil is ramped-up crude output in Libya after the resolution of a political standoff that had curbed the country's crude production and exports. Libya's National Oil Corp said Tuesday that Libya's crude production rose to 1.13 million bpd, the most in two months, which boosts global crude supplies.
Crude prices found support after OPEC+ on September 5 agreed to pause its scheduled crude production hike of 180,000 bpd in October and November due to recent weakness in crude prices and signs of fragile global energy demand. However, the Financial Times reported on September 26 that Saudi Arabia is ready to abandon its unofficial oil price target of $100 a barrel to regain its market share and is committed to returning its crude production as planned on December 1.
A decline in Russian crude exports is supportive of crude. Weekly vessel-tracking data from Bloomberg showed Russian crude exports fell by -370,000 bpd to 3.37 million bpd in the week to October 6. Also, Russia's Energy Ministry reported last Wednesday that Russia's Sep crude production was 8.97 million bpd, down -13,000 bpd from Aug and just below the 8.98 million bpd output target it agreed to with OPEC+.
Last Wednesday's EIA report showed that (1) US crude oil inventories as of October 4 were -4.0% below the seasonal 5-year average, (2) gasoline inventories were -3.7% below the seasonal 5-year average, and (3) distillate inventories were -9.0% below the 5-year seasonal average. US crude oil production in the week ending October 4 rose +0.8% w/w to 13.4 million bpd, tying the record high from the week of August 16.
Baker Hughes reported last Friday that active US oil rigs in the week ending October 11 rose by +2 rigs to 481 rigs, just above the 2-1/2 year low of 477 rigs posted in the week ending July 19. The number of US oil rigs has fallen over the past year from the 4-year high of 627 rigs posted in December 2022.
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On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
WTI Crude Dips Amid Geopolitical Ca |
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