These oil producers offer rising payouts

Article Excerpt

Chevron and Suncor are close to finishing major projects that should spur their earnings—and dividends—for years to come. Both companies already hold less risk than other producers. That’s because their oil refining businesses cut their exposure to volatile crude oil prices. CHEVRON CORP. $118 (New York symbol CVX, Cyclical- Growth Dividend Payer Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $224.2 billion; Dividend yield: 3.7%; Dividend Sustainability Rating: Above Average; www.chevron.com) is the second-largest integrated oil company in the U.S. by revenue, after Exxon- Mobil (New York symbol XOM). With the December 2016 payment, the company raised its dividend by 0.9%, to $1.08 a share from $1.07. The new annual rate of $4.32 yields a high 3.7%. Chevron recently started up its Gorgon offshore liquefied natural gas (LNG) project near the northwest coast of Australia. It owns 47.3% of the project and manages it. The site’s reserves should last 40 years. The company’s second Australian LNG project, Wheatstone, is set to begin commercial…