Just wondering if anyone will continue to hold CVX stock in their 401k?
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I’ve been with Chevron 20 years. From 2006 to late 2012, I had it all in CVX stock. During that time it did significantly better than the S&P 500. I decided to move all of it into aggressive growth funds in late 2012. I got lucky since the S&P has done significantly better since then. I don’t recommend holding more than 5-10 of CVX stock.
Original poster of @h2 here: that should read “unlikely to yield significant strategic advantage”
@OP I sold all my stock three years ago. Exchanged it for a blend of tech stocks and index funds. I see a lot of people putting a lot of emphasis on dividends, but the sheer stock valuation that I have realized on the holdings I now have has blown away by magnitudes any dividend that I would have received or ever received from this company. As an employee we are under no obligation to own company stock. Future valuation of this company is not favorable since our management does not appear to be interested in locating and developing long term reserves, but instead, seems to only be interested in acquiring just enough reserves to cover the dividend.
listen to this person
the days of big oil are numbered. the stocks are not long term holds unless you’re a ge---r who will be dead in 15-20 years and just wants a company willing to do anything to keep it going until they die
It’s a dying company in a dying industry.
Whilst it’s paid a solid dividend, the leadership are running out of levers to pull to keep that dividend train arriving on time. Offshoring is a last-ditch effort that is likely to yield significant strategic advances.
The price has barely moved over the past few years, and Wall Street don’t seem to have been wowed by either the announcement of ENGINE, nor our decision to become a middleman selling GE turbines to AI companies.
No matter what you think of the company, Chevron is a solid dividend payer, and MW will do anything to keep the dividend paid. That said, you should also follow the advice of not holding more than 10% of your holdings in any single company.
First 10 years with the company I accumulated some stock. While also understanding that it wasn’t typically a wise investment strategy to combine so much of your retirement outcomes in one basket. It was a good company, with a dividend that helped absorb some of the negatives of the overall price performance vs the market. Then I just kind of held the stock I’ve had. More of an indifference strategy with some paralysis around just pulling the trigger to sell.
Now at 20 years, and the current state of the company, I’ve been slowly selling it all off. I have no confidence in the long term direction for the company. Feels like the only strategy is to make short term decisions that leadership thinks will have an impact on the stock price. Nothing that looks like strategies focused on the future success of the company. With that, a long term investor that was stuck on making a decision, has been pushed to sell.
sell it all
oil and gas stocks are awful holds. they are not and will never be growth stocks, and one day the dividend will just stop on some of them because it’s completely unsustainable.
oil and gas stocks are kept afloat by old school dividend investor retired boomers who don’t understand technology stocks. when they’re dead and it’s been a decade since any major invested in new assets, the board wide oils stock crash comes. 10-20 years.
if you read between the lines it’s easy to tell that most majors have CEOs who know this and have opted to make the ships sink more slowly while maintaining the dividends as the whole industry permanently and irrevocably shrinks instead of making pivots or pursuing green field. pretty much only exxon is playing like they’ll be around in 20 years. everybody else is just cuts, india, dividend, sell assets they’ll never get back to maintain dividend. They rant about “bolt on” and “proven reserves” and “maybe our risk appetite will change”. It’s all so tiresome and obvious.
You’ve seen the lack of strategy internally. From a financial perspective why risk your financial future here? If you invest in energy do so with a leading performer. There is no loyalty either way and you need to do what’s best for your family’s financial health. Make a business decision and leave emotion out of it.
The downvoters will be along shortly to su-k up how great the stock is.
Chevron may get a bump from their assets in Venezuela.
If you are considering the sale soon, the price of stock is on the higher end currently. Pi could sell at this price and reinvest into an etf for either growth or a consistent dividend yield.
But I agree with the other poster, cvx is not a growth stock and Trump is focusing on cheap oil prices for the next 3 years.
Selling all, I did.
Hard pass.
Dumped it as soon as I retired.
Trump has made reducing energy costs at the forefront of his economic policy. I dont see Chevron outperforming the market unless there is a major war in the ME which looks unlikely.