Having a healthy payout stream to help diversify the income of a portfolio could make all the difference in the long run. With the consumer price index (CPI) showing values over 8%, stocks consistently growing their dividends could help an income stream hold up better than other investments.
Despite the global talk of higher interest rates, companies with strong and resilient cash flows are raising their payouts, despite some firms seeing revenue declines caused by geopolitical tensions.
Chevron (NYSE: CVX)
Despite oil falling due to demand destruction, Chevron has been ‘disciplined in their capital expenditures’ with the constant diversification in the approach to the energy markets, potentially offering more resilience than other energy firms.
On September 25, Chevron signed an agreement with Japan’s Mitsui Oil to collaborate on the advancement of geothermal power generation in Japan. With an approach to diversification, a dividend yield of 3.6%, and a dividend hike of 6% in January, the shares could be a cornerstone for a dividend investor’s portfolio.
Analyzing the stock, the short-term trend is negative, and the long-term one is neutral, with the shares trading from $143.66 to $166.83 over the past month, remaining slightly above the 200-day moving average.
TipRanks analysts rate the shares a ‘moderate buy,’ with the average price in the next 12 months reaching $178.73, 23.46% higher than the current trading price of $144.77. Equally important, out of 15 Wall Street analysts covering the firm, 10 have a buy rating and 5 a hold.
State Street Corporation (NYSE: STT)
The firm ranks among the biggest global asset management companies, roughly managing $3.48 trillion in assets. Their network of 2,100 institutional clients across 57 countries offers ample diversification risk for their business to keep growing. In addition, the popular ‘spider,’ SPDR index exchange-traded funds (ETFs), are their invention.
Shares have seen a lot of volatility; year-to-date (YTD), they’re down 32.63%, possibly offering a solid entry position for investors looking to boost their dividend portfolio. Over the past month, STT has been trading in the $62.72 to $74.74 range, with technical analysis indicating a support line at $61.74 and a resistance zone from $69.34 to $70.87.
Analysts on Wall Street rate the shares a ‘moderate buy,’ seeing the average 12-month price reaching $79.12, 24.86% higher than the current trading price of $63.63, with seven analysts having a hold rating and four a buy rating.
Regardless of the investing environment, firms with strong and stable cash flows and raising payouts to shareholders should enjoy more attention from investors. Dividend investors looking for two solid picks to keep on their watchlists should look no further than the two above.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.