Expect them to maintain their high dividends

Article Excerpt

The dividends from producers of commodities tend to vary with the price of those underlying commodities. The best picks for income-seeking investors are those with the scale to absorb short-term commodity price declines without cutting your dividend. Those income picks include Chevron and Nutrien. CHEVRON CORP. $136 remains a buy. The company (New York symbol CVX; Cyclical-Growth Dividend Payer Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $258.4 billion; Dividend yield: 4.2%; Dividend Sustainability Rating: Above Average; www.chevron.com) is the second-largest integrated oil producer in the U.S. by revenue after ExxonMobil (New York symbol XOM). With the March 2022 payment, Chevron will raise your quarterly dividend by 6.0%. Investors will receive $1.42 a share instead of $1.34. The company’s new annual rate of $5.68 yields a high 4.2%. Chevron has increased that payment each year for the past 35 years. The company produced 3.12 million barrels of oil per day during the quarter ended December 31, 2021, down 5% from a year earlier. However, thanks to…