Chevron: the Permian and the payout
Chevron's production growth comes from a basin it already owns, its dividend has grown for decades, and the stock yields more than the market. A slower, higher-yielding way to own the same energy rotation as Exxon.
Sample research report used to test the layout. Delete before launch.
Thesis
If energy is under-owned and the sector catches a bid, the two majors lead. Between them, Chevron is the higher-yield, lower-growth option, and I want both in the position for the rotation, not just one.
Catalysts
- Permian production hitting the guided plateau ahead of schedule.
- Buyback pace, which the company sets by the oil price.
Risks
- Oil price. Nothing else comes close.
- The pending acquisition closing on worse terms than announced.
What would prove me wrong
A dividend cut. It has not happened in decades, which is exactly why it would matter.
Position
Half position, paired with the Exxon idea.