Chevron's Iraq Bet Isn't the Real Dividend Growth Story. Here's What Is.
Chevron is looking to produce more energy from Iraq and make it easier to bring to market, but that's just normal business.
Overview
The global energy market has been upended by the geopolitical conflict in the Middle East, with reduced supply driving up oil and natural gas prices. However, companies like Chevron (NYSE: CVX), while benefiting from today's high energy prices, think in decades, not days, weeks, or months. In fact, volatility is the norm for the energy sector. Management's long-term approach is why Chevron is actively looking to invest in the conflict-torn Middle East. But what does this really mean for dividend investors?
There are many reasons to like Chevron as an investment. For example, it is large and geographically diverse, with exposure to the entire energy value chain. But one of the biggest is the company's consistency, which is highlighted by a 38-year streak of annual dividend increases. Add in a well-above market 3.5% yield, and the story gets even better for dividend lovers seeking to add some energy exposure to their portfolios.
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Originally published at www.fool.com.