Dividend Yield: 3.31%
If you’re looking to dig up a solid dividend, look no further than oil and gas giant Chevron (CVX). The Dependable Dividend stock has been paying a dividend for an jaw-dropping 101 years, and has increased that payout by over 185% in the past decade alone.
On top of that, you can count on that dividend for the long haul. In 2012, Chevron paid out $3.51 per share in dividends — less than 28% of its total adjusted earnings for the year.
Plus, CVX upped its quarterly payout this year — something its done every year since the turn of the century — and that $4-per-share annual payout still looks sustainable, as the company is slated to earn $12.16 for the year.
The one thing to note is that Chevron does have a high payout ratio when you compare its dividend to its free cash flow, as a good chunk of the company’s operating cash goes to capital expenditures — which have been on the way up of late. But there’s still some wiggle room; last year’s dividends took up a manageable 86% of free cash flow, and earnings (and thus FCF) are slated for solid growth of 7% per year over the next half-decade.
And for the cherry on top, Chevron has a huge war chest of cash to dip into if things get a little rocky — and that cash cache has been growing in recent years. At the end of the most recent quarter, the oil and gas giant had more than $20.6 billion in cash and equivalents vs. a mere (relatively speaking, of course) $8 billion back in 2009.