Energy stocks are on fire and these 5 lavish and reliable dividends – 24/7 Wall St.
There was recently a tsunami of gossip on Wall Street about rising interest rates. Many believe the Federal Reserve could start raising interest rates by the end of 2022, if not sooner. In addition, many strategists believe that the reduction in the quantitative easing program, where the Federal Reserve buys government bonds through the curve and mortgage debt, will begin as early as this summer.
The bottom line for yield-hungry investors is that interest rates, while arguably higher than a year ago, are still at levels near generational lows, and despite a rise, the benchmark the 10-year US Treasury is still reporting a measly 1.61. %. In 2007, the bond had a yield of 5.05%.
We sifted through our 24/7 Wall St. research database for booming energy companies that pay big dividends, and we found five that not only offer reliable high returns. , but have the potential to rise as oil approaches the $ 70 level, which is the highest since 2018. It is always important to remember that no analyst report should be used as the sole basis for any decision to buy or sell.
This energy giant is a solid fit for more conservative investors looking to position themselves in the energy sector. Chevron Corp. (NYSE: CVX) is an integrated United States-based oil and gas company with global operations in exploration and production, refining and marketing, transportation, and petrochemicals. The company is showing a strong dividend and has a strong position in the industry for natural gas and liquefied natural gas (LNG).
With the majors’ strongest financial base, coupled with an attractive relative asset base, many on Wall Street believe Chevron offers the most directly positive risk / reward. While current conditions do not warrant a strong focus on production growth, Chevron has many mid-term drivers (Noble, Permian integration, TCO / WPMP expansion, Gulf of Mexico exploration, Vaca Muerta, etc.) that should support production levels in the coming years.
Shareholders receive a large dividend of 5.03%, which analysts say will remain at current levels. The BofA share price target for buy listed shares is $ 125. This compares to a Wall Street consensus target of $ 120.20. Chevron’s last stock trade for Tuesday was reported at $ 106.65 per share.
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