Better Dividend Stock: Chevron vs. Enbridge
If you are looking at the energy sector and trying to find an attractive dividend stock, you'll probably find both (NYSE: CVX) and Enbridge (NYSE: ENB) on your radar screen. That makes total sense, as both have large yields and each one is an industry-leading business. But should you buy Chevron and its 4.4% yield or Enbridge and its much higher 5.8% yield? It requires a look beyond the dividend to make the final call.
Chevron is an integrated energy company. That means that it operates in the upstream (energy production), midstream (pipeline), and downstream (refining and chemicals) segments of the broader energy sector. Energy prices will always play a big role in determining the company's revenue and earnings. However, each segment of the industry operates a little differently, so the diversification across the sector helps to soften the peaks and valleys of often volatile energy prices.
On top of being an integrated energy company, Chevron also has a rock solid balance sheet. With a debt-to-equity ratio of around 0.2, it has one of the strongest financial positions among its closest peers. This allows management to take on debt during energy downturns so it can continue to support its business and dividend. When energy prices recover, as they always have historically, Chevron pays down debt. The proof of the company's resilience is highlighted by the 38 consecutive annual dividend increases it has provided to investors.
Source Fool.com
Chevron Corp. Aktie
Die Community unterstützt Chevron Corp. stark, mit vielen Buy- und wenigen Sell-Einschätzungen.
Die Community erwartet für Chevron Corp. ein Kursziel von 162 €, was eine Steigerung von über 20% gegenüber 126.42 € bedeuten würde.
