We (wife and I) already have 200 shares...That are optioned for the Jan 22 $100. We bought 100 more shares today...At $85.25. Then did a covered call on it...Jan 22 $90. We got $8.60 ($860.) for the sell to open. The stock is dropping as I write. That is one of the reasons I like to option something as soon as I buy it. Grab some income while I wait. The current dividend is about 6%...Don't know if they will hold it. My thoughts on why I still like this company...Electric charging, oil reserves, clean restrooms, good locations, tie-ins with other companies (McDonald's). Some of this is a repeat of a thread I wrote earlier. The charging stations are big...I believe you will soon see some contracts with major car companies as they roll out their electric vehicles. Does Ford/GM/Toyota really want to put in charging stations around the US?? Wouldn't they rather partner with someone like Chevron?? 10 miles from me is a Chevron/McDonalds. I could see people charging there...While people (with kids) get something to eat. And they would probably use it because the know Chevron is usually a safe location, with good bathrooms. They bought Noble Energy...Good reserves. They are set for many years in oil...While they transition to charging. When we think of the phrase location location location...Chevron has it. Better planned in the grid that even McDonald's or Starbucks. Most Starbucks do not have the capacity (parking/charging) that will be needed. For me this move is also like owning Verizon (VZ)...Which we also bought today. IT'S THE PIPES!! My thoughts on pipes. With Verizon, they will have to spend billions to buy up 5G spectrum. Their stock will be down or stay the same for years, till they can build out their network...But when they do, they should have a steady income flow. It is a way to play the internet without dealing with the hardware or software. I feel Chevron is the way to play the transition to electric cars and trucks. We don't know who will be the winners in the market. I can not see that far out. I do know it will be costly for a company to have one person man a charging station while people wait for a charge. If no one is there (self charging), the homeless (or bad guys) could move onto the site. You need 1 or 2 people at a gas station rest stop, for safety and security. The site HAS TO be maned (womaned). Just talking out loud for what is see 10 years from now...
No opinion on Chevron in other parts of the country, but here in South Florida they used to have nice stations. Last few years they are behind the curve. So are many of other majors. RaceTrac, Cumberland Farms and now WaWa coming down from Northeast are the nice clean biiig stations nowadays. Then of course there are WalMart's Murphy Oil at their SuperStores and Costco, Sam's and BJ's as well as numerous other regional players. Crowded field. I'd think consolidation of sorts is coming down the pike among the oils, fastfood, coffee and convenience chains. "Survival of the swiftest".
You are right...Wal Mart already has charging locations. I'm sure many of these others will have them as well. It's the ones that are in the middle of nowhere is where Chevron can do well...One horse town. The 2500 person town with 3 gas stations and maybe a McDonald's. Yeah, I think Walmart has built locations within 10 miles of 90% of the US population. But for traveling, the Walmart may not be there. Post Covid-19 people will want to travel. If they have only an electric car they will NEED that charging station. If I was GM/Ford/Toyota I would want to start buying up good commercial/highway locations for pennies on the dollar (old Sears, food chains that are going away). Create your network for charging. Also there in no reason (I can think of) for car dealerships not to have charging stations on site. Most are by the freeways. With the democrats taking power (either in 2021 Georgia or 2022)...The charging issue will move quickly. Just think Chevron is positioned well for this market.
You make some salient and logical points about Chevron, if it is true about them all having charging stations on our Interstates. I hope you are correct, because I went in blind on some energy stocks (Chevron being one of them) in Feb this year, right before energy stocks shit the bed and have yet to recover to that level.
That is why I did that covered call at $90. for 2022. In case the stock drops, I have "some" income. The big questions is will large oil companies hold their dividends???