Big jump in cash flow just ahead

Article Excerpt

CHEVRON CORP. $110 (New York symbol CVX; Cyclical Growth Dividend Payer Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $209.0 billion; Dividend yield: 4.1%; Dividend Sustainability Rating: Above Average; www.chevron.com) expects its average production will rise between 4% and 7% from 2018 to 2020. That’s mainly due to rising output at its Permian shale oil properties in Texas. The company is also doing a good job keeping its operating costs down. As a result, its free cash flow (regular cash flow less capital expenditures) will likely rise to $14 billion in 2018 from $8 billion in 2017. That gives Chevron more room to raise its dividend; the current annual rate of $4.48 a share yields 4.1%. Chevon is a buy. buy…