I love buying dividend stocks. I like to collect the passive income they produce. On top of that, dividend stocks have historically delivered much higher total returns than companies that don’t pay dividends. Because of that, they’re a no-brainer investment for me.
I like to routinely add to my favorite dividend stocks each month. Two that top my buy list for November are Chevron (NYSE: CVX) and Vici Properties (NYSE: VICI). Here’s why I plan to continue adding to these top dividend stocks this month.
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Chevron is one of the best dividend stocks around, increasing its payout for more than 35 straight years. The oil giant raised its payment by 8% earlier this year and has grown it faster than its peers and the S&P 500 over the last five years. Chevron currently offers a very attractive dividend yield of more than 4%, putting it much higher than the S&P 500 (under 1.5%).
The company should have plenty of fuel to increase its dividend in the future. Chevron expects to grow free cash flow by more than 10% annually through 2027. That forecast assumes oil prices of $60 a barrel, which is below levels of the past three-plus years. Meanwhile, shareholders should also benefit as the company uses some of that cash to repurchase shares. Chevron is planning to buy back $10 billion to $20 billion of shares annually, which is enough to retire 3% to 6% of its outstanding shares. Thanks to its fortress-like balance sheet, it can achieve the low end of that range even if crude oil prices average around $50 a barrel.
Meanwhile, there’s upside to that plan if Chevron closes its needle-moving acquisition of Hess. That deal would more than double its free cash flow by 2027, assuming $70 oil. The acquisition would also extend its production growth outlook into the 2030s. That could give Chevron even more fuel to increase its dividend in the future.
Vici Properties has developed an excellent record of paying dividends. The real estate investment trust (REIT),…
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