It seems hard to believe, but the third quarter is almost over and only one quarter remains in 2021. Now is the time when many investors will be reviewing their portfolios and making changes for the final 12 weeks of the year and into 2022. One thing is looking ever more likely. In November, the Federal Reserve will start tapering its quantitative easing of $120 billion per month of asset purchases. While the Fed has made its intentions very clear regarding this, that does not mean some added volatility won’t be part of the mix as we the end of the year approaches.
It makes sense now for investors to move from the momentum and meme stocks to more conservative large-cap stocks that pay dividends. We screened the Dow Jones industrials looking for the highest-yielding companies in sectors that look to benefit from the continued reopening of the country and the economy. All these stocks are rated Buy at major Wall Street firms. It is important to remember though that no single analyst report should be used as a sole basis for any buying or selling decision.
This energy giant is a solid way for investors who are more conservative to be positioned in the sector. Chevron Corp. (NYSE: CVX) is a U.S.-based integrated oil and gas company, with worldwide operations in exploration and production, refining and marketing, transportation and petrochemicals. The company sports a sizable dividend, and it has a solid place in the sector when it comes to natural gas and liquefied natural gas (LNG).
With the strongest financial base of the majors, coupled with an attractive relative asset base, many on Wall Street feel that Chevron offers the most straightforwardly positive risk/reward. Although current conditions do not warrant a large focus on production growth, Chevron possesses numerous medium-term drivers that should support production levels in the coming years.
Analysts feel comfortable that the 5.21% dividend will remain at current levels. The BofA Securities price target for Chevron stock is $130, while the consensus target is just $120.33. Monday’s final trade was reported at $102.97 per share.