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Exxon Mobil Corporation (XOM), Chevron Corporation (CVX): Why You Need a Dividend Like This One

All three companies should continue to deliver payout increases in the future. Over the past five years Exxon Mobil Corporation (NYSE:XOM) has spent $162 billion on capital projects. It has several major projects that it’s moving forward with that should start churning out cash flow over the next few years. Chevron Corporation (NYSE:CVX) has a similar growth outlook as it’s currently constructing many of the projects that will deliver its growth through 2017. Because of this the company sees the capacity for enhanced shareholder distributions in the future as these projects come online. Finally, Enterprise Products Partners L.P. (NYSE:EPD) also has a pipeline full of projects currently under construction. Overall, the company has $8 billion worth of projects it plans to put into service through 2015 including the key ATEX Express pipeline linking the Marcellus and Utica to the Gulf Coast. As these projects start to contribute earnings over the next few years, those earnings will eventually be turned over to investors through an increased payout.

As an investor there are two key traits to look for in a dividend built to last. First, it should be paid by a company with a history of growing its dividend. Further, that company needs to have a fairly visible future growth pathway to support the growth of that dividend. When those two traits are combined, it’s the recipe for peace of mind during your golden years.

The article Why You Need a Dividend Like This One originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo owns shares of Enterprise Products Partners L.P.. The Motley Fool recommends Chevron and Enterprise Products Partners L.P.

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