Dividends, Darling: A Spot of Income

One rather despairs of the market these days, doesn’t one? All this volatility is so…tiresome. Still, a sensible investor always seeks a haven, and in these turbulent times, a reliable dividend stock is as comforting as a perfectly mixed martini. Income, you see, is the thing. It smooths the wrinkles, so to speak. Two companies currently offering a modicum of reassurance are Verizon and Chevron. Not terribly exciting, perhaps, but undeniably…solid.

1. Verizon: A Steady Hand

Verizon, bless their predictable hearts, have maintained their dividend at $0.69 per share. A rather uninspired figure, admittedly, but they’ve been doing it for twenty years, which, in the grand scheme of things, is practically an eternity. A yield of 6.2% is, shall we say, remarkably generous in this rather stingy climate. Six times the S&P 500 average? One almost suspects a miscalculation, but no. It appears to be quite genuine.

Their payout ratio – 58% – is a touch high, naturally. One doesn’t like to see companies stretching too thin, but they seem to be managing. And, quite remarkably, they’ve added nearly a million new subscribers recently. A most impressive feat, considering everyone is glued to their streaming services these days. They anticipate further growth, which is always encouraging. One expects a decent return, and a dependable dividend. A perfectly acceptable combination, wouldn’t you agree?

2. Chevron: Black Gold and Dividends

Chevron, ever the pragmatist, has boosted its dividend by 4% to $1.78 per share. A yield of 4.03% isn’t going to make anyone a millionaire, but it’s perfectly respectable. And they’ve been increasing their dividend for thirty-nine years! One begins to suspect they have a secret pact with the gods of financial stability.

The stock has seen a rather pleasing surge recently, fueled by optimism regarding Venezuelan production. One is always wary of optimism, naturally, but it’s a welcome change. Earnings were down slightly, admittedly, due to various factors – lower oil prices, pension adjustments, and the acquisition of Hess. A bit of a muddle, really. But they have a healthy free cash flow – $5.5 billion, to be precise – and a remarkably low debt-to-equity ratio. One appreciates a company that doesn’t overextend itself.

Their production is up, both domestically and abroad, which should offset any price declines. All in all, a rather robust performance. They seem well-positioned to continue funding their dividend for years to come. A comforting thought, wouldn’t you say? One simply must have a little security in this increasingly unpredictable world.

So, there you have it. Two companies, not terribly glamorous, but reliably…present. A spot of income to tide one over until the market decides to behave itself. And, frankly, darling, that could be a very long wait indeed.

2026-02-05 00:32

1. Verizon: A Steady Hand

2. Chevron: Black Gold and Dividends

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