Many companies in our portfolio routinely repurchase stock and increase their dividend payments year after year. These are traits we look for in many of our investment decisions. Below we have highlighted three names who have all announced new and improved capital return programs just in the past week.
On Wednesday, the newest initiation in the Charitable Trust Chevron raised its share buyback guidance range to $3 billion to $5 billion per year from prior guidance of $2 billion to $3 billion per year. We can’t say we were completely surprised by this news. In our initiation post, we mentioned that it was only a matter of time until management increased its buyback activity. Remember, Chevron’s focus on capital and cost discipline means that the majority of the excess cash they generate will be returned to shareholders via dividends and buybacks. And how can you not appreciate that fat 4.67% dividend yield as something investors can fall back on if the market remains volatile?