High Dividend Opportunity in Chevron Stocks

Pay Attention to Chemron Stock Dividend Date!

Chemron Corporation (NYSE:CVX) shares will be traded independently of the dividend date within the next 4 days. This date, determined one business day before the dividend date, is the last date that investors must be registered shareholders of the company to receive dividends. It is crucial for investors to pay attention to this date, as purchases made after this date may be reflected in the records with a delay. Therefore, purchasing Chemron shares before November 18 is necessary to receive the dividend payable on December 10.

Chemron is planning a dividend payment of 1.71 USD per share for this period. Over the last 12 months, it has distributed a total of 6.84 USD in dividends to investors. Calculations based on the current share price of 153.32 USD show that Chemron has an annual yield of 4.5%. The sustainability of dividend payments and the company's growth potential should always be taken into consideration.

Dividends are generally paid from the company's earnings. If a company pays out more in dividends than it earns, this poses a risk to long-term sustainability. Chemron stands out for distributing 95% of its earnings as dividends; this ratio is not particularly encouraging unless some adverse conditions arise. However, cash flow generally takes precedence over earnings when evaluating dividend sustainability. Chemron distributes 79% of its free cash flow as dividends. While this ratio generally remains within acceptable limits, it might limit the company's ability to increase dividends.

Although Chemron's dividends are not fully covered by its earnings, they appear to be at reasonable levels concerning cash flow. Nonetheless, if the company continues to distribute a high percentage of its earnings as dividends, the dividends may be at risk if things go wrong.

The company's earnings per share have been showing regular increases; it recorded a growth rate of 32% annually over the last five years. In general, companies with strong growth potential tend to be the best dividend payers. When reviewing the dividend payout ratio, investors should look back at the past dividend growth rate. Over the past decade, Chemron has achieved an average annual dividend increase of 4.8%, indicating that the company is primarily reinvesting its earnings into business growth.

So, should investors prefer Chemron shares? The company is showing beautiful growth in earnings; however, the gap between cash flow and earnings distribution ratios suggests that there may have been some impairment reports last year. It could be important to investigate whether Chemron is reinvesting in its growth projects, but for now, the dividend expectations are not very optimistic.

Finally, if dividends are not a priority for you, you should also consider the other risks that Chemron faces. In this context, we have identified 2 warning signs to watch out for regarding Chemron.

If you are looking for strong dividend payers, we recommend you check our selection of the best dividend stocks.