Yahoo Financeยท2025-09-11 09:45Group 1: Chevron - Chevron's free cash flow (FCF) is projected to cover its current payout of $11.7 billion and provide room for buybacks, making it attractive for income investors [1] - Management anticipates generating an additional $12.5 billion in FCF by 2026, on top of $15 billion in 2024, while Wall Street analysts estimate $24 billion in 2026 and $28 billion in 2027 [2] - The acquisition of Hess is expected to contribute $2.5 billion to FCF by 2026, alongside $10 billion from increased production in Kazakhstan, the Gulf of Mexico, and the Permian Basin [3] - Chevron's diversified asset mix and strong balance sheet enhance its appeal to passive income investors, with the Hess acquisition reducing risk and adding valuable assets [4] Group 2: Coca-Cola - Coca-Cola is facing challenges in the consumer staples sector but is outperforming peers due to its strong supply chain, marketing, and diversified beverage lineup [10] - The company expects to grow non-GAAP earnings per share (EPS) by 3% year-over-year to $2.97, with currency-neutral EPS projected to grow 8% [11] - Coca-Cola maintains a 3% dividend yield and has increased its payout for 63 consecutive years, positioning it as a reliable high-yield dividend stock [12] Group 3: Schwab U.S. Dividend Equity ETF - The Schwab U.S. Dividend Equity ETF offers a 3.7% distribution yield and is suitable for investors seeking passive income without the complexity of individual stock selection [13] - The ETF has significant exposure to energy stocks, with Chevron and ConocoPhillips as its largest holdings, and also includes consumer staples and healthcare sectors [14] - With a low total expense ratio of 0.06%, the ETF presents a cost-effective option for generating passive income [15]