Berkshire Hathaway receives over $800 million in dividend income from Chevron.
The oil giant paid a high-yield dividend backed by low-cost business and rock-fixed financial position.
It has a lot of fuel to continue to increase dividends.
10 stocks we like better than herringbone›
Herringbone (NYSE: CVX) It is one of Warren Buffett's highest shares Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). Buffett owns 6.8% of the oil giant's outstanding shares (118.6 million shares, worth $16.7 billion). It is the fifth largest stake in Berkshire, accounting for 5.8% of the portfolio.
one HerringboneThe highest investment feature is its high-yield dividend. Buffett Company represent Received over $800 million in dividend income from Chevron This year.
That's why investors Who do you want Passive income generation near Check out this top Buffett stock.
Herringbone Now Investors paying their $1.71 per share each quarter ($6.84 per year). and Oil stockpile The latest deal is as low as $140 and its dividend yield is 4.9%. This is much higher than the average dividend stock ( S&P 500 index'S dividend yield is currently about 1.3%).
The large expenditure of oil companies is on the ground fixed by rocks. Although oil prices may be Very Volatile, herringbone has a Very Flexible business. one Big The factor is its low-cost portfolio of oil and gas resources. Currently, its upstream business in the industry has the lowest level of breakeven, about $30 per barrel. With the current $60 crude oil, Chevron can generate enough cash to cover its dividend payments and capital expenditure plans with spare space.
Chevron also has an elite balance sheet. The company ended with a net debt ratio of 14%. This is the low end of its companion group, comfortable below its target range of 20% to 25%. Chevron's strong balance sheet Give it flexibility During the lower oil price period, continue to invest in capital to grow its business and return cash to shareholders.
The oil giant has proven the durability of its dividend for decades. “We have received dividends through multiple commodity cycles for 38 consecutive years, leading peer growth over the past decade,” CFO Eimear Bonner noted on the oil company’s first-quarter earnings call.
Chevron continues to grow its dividend in a good position in the future. Oil Company Now It is expected to increase its oil and gas production to around 6% compound year next year driven by projects in the Gulf of Mexico (also known as the U.S. Gulf), the Permian Basin and Kazakhstan. The company estimates its investment in increasing its high-margin production in these regions will position it as $9 billion in free cash flow next year at a price of $60.
The company has a lot of fuel to continue growing until after next year. It still has a lot of Production grew in places like the Permian, Gulf and eastern Mediterranean. Meanwhile, CEO Mike Wirth said on a first-quarter conference call, “We are also expanding the channels for future opportunities.” He noted that Chevron has added more than 11 million acres since the beginning of last year as it continues to find new oil and gas sources. Too Advancing natural gas power solutions to help power U.S. data centers. In addition, Chevron is participating in a pipeline project to increase Argentina's export capacity.
Chevron is also building several low-carbon energy businesses. company Concentrating On renewable fuels, hydrogenand Carbon capture and storage. These businesses should help drive future growth as the company provides lower-carbon energy to the world.
Finally, Chevron expects to close its needle acquisition Hess. The company will face competitors ExxonMobil In an arbitration hearing to resolve their dispute over Hess shares in Guyana offshore later this month in ExxonMobil Oilfield. Chevron is very confident that it will win in court Recently bought nearly 5% of Hess outstanding shares. Ending the deal will expand the prospects for Chevron's production and free cash flow growth into the 2030s.
Chevron's various growth drivers should continue to grow in cash flows and dividends over the next few years.
Chevron paid a high-yield dividend and supported by a rock-fixed business model and financial position. As the growth is moving forward, dividends for oil companies should continue to rise future. So you can join Warren Buffett's company and collect profit margins from passive dividend income by buying Chevron's stock.
Before you buy stock at Chevron, consider the following:
this Motley Fool Stock Advisor The analyst team just confirmed what they think is 10 Best Stocks Investors buy now…and Chevron is not one of them. Ten stocks with layoffs could generate monster returns in the coming years.
When to consider Netflix On this list on December 17, 2004...If you invested $1,000 when you suggested, You will have $642,582! * Or when Nvidia This list was listed on April 15, 2005...If you invested $1,000 when you suggested, You will have $829,879! *
Now, it's worth noting Stock ConsultantThe overall average return is 975% - Compared to market sprints 172% For the S&P 500 index. Don't miss the latest top ten list, available when you join Stock Consultant.
View 10 stocks »
*As of May 12, 2025, stock consultants will return the goods
Matt Dilallo holds positions at Berkshire Hathaway and Chevron. Motley fool has a place and recommends Berkshire Hathaway and Chevron. Motley Fool has a disclosure policy.
Warren Buffett's highest stock is the passive income super dividend stock, originally published by Motley Fool