
Core Insights - The article discusses three companies that are on track to become Dividend Kings, which are companies that have increased their dividend payments for at least 50 consecutive years [1][13] Chevron - Chevron has extended its dividend growth streak to 38 consecutive years, making it the second-longest in the oil sector [3] - The company supports a dividend yield of over 4% with a durable portfolio, maintaining a breakeven level at about $30 per barrel, allowing for substantial cash flow even during low oil prices [4] - Chevron's leverage ratio is under 15%, below its target range of 20%-25%, indicating a strong balance sheet [5] - The recent acquisition of Hess has improved Chevron's long-term growth outlook, enhancing its resource base and extending production and free cash flow growth into the 2030s [6] - Chevron is investing in lower-carbon initiatives, including lithium extraction and carbon capture, to diversify and futureproof its earnings [6] Enbridge - Enbridge has paid dividends for over 70 years and has increased its payout for the last 30 consecutive years, earning 98% of its revenue from reliable cost-of-service agreements [7] - The company currently has a dividend yield of 5.5%, paying out 60% to 70% of its steady cash flow in dividends while investing the remainder in growth [8] - Enbridge has a multi-billion-dollar backlog of capital projects, including oil and gas pipeline expansions and renewable energy assets, expecting around 5% annual earnings growth to support similar dividend increases [9] Realty Income - Realty Income has increased its monthly dividend 132 times since its public listing in 1994, demonstrating reliability as an income stock [10] - The REIT's diversified portfolio generates reliable cash flow through long-term net leases, allocating about 75% of its steady cash flow toward dividends [11] - Realty Income has a strong balance sheet, providing financial flexibility for future investments, with an estimated $14 trillion of real estate suitable for its net lease structure [12]