Lower costs protect these cyclical payouts

Article Excerpt

Chevron and Ford operate in cyclical industries, so their cash flows move up and down with the overall economy. However, both are doing a good job of controlling their costs. That should let them maintain their current payouts. CHEVRON CORP. $105 (New York symbol CVX, Cyclical-Growth Dividend Payer Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $199.5 billion; Dividend yield: 4.1%; Dividend Sustainability Rating: Above Average; www.chevron.com) is the second-largest integrated oil company in the U.S. by revenue, after ExxonMobil (New York symbol XOM). Producing oil and natural gas supplies about 16% of Chevron’s revenue. The other 84% of revenue comes from the company’s refineries, petrochemical operations and 7,800 gas stations in the U.S. Those stations operate under the Chevron and Texaco banners. The company last raised its dividend by 0.9% with the December 2016 payment, to $1.08 a share from $1.07. The new annual rate of $4.32 yields a high 4.1%. Low oil p growth f Chevron’s revenue in the first quarter of…