Oil and gas companies have always faced pressures due to fluctuating oil prices, weather conditions and environmental damage. CVX has been successful in handling these pressures by diversifying geographically and controlling its production effectively. It is the largest resource holder amongst all international companies in USA, the only international company to have a 70 year upstream presence in Saudi Arabia and it also places a high emphasis on emerging markets; currently Africa and Latin America. CVX is currently struggling to maintain its $8bn dividend, which has been on the increase for the past 29 years. However, CVX is anticipating relief to its cash flow through its Gorgon LNG project.
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One of the most well-known brands worldwide, Coca-Cola has numerous products under its umbrella. KO, along with most of its other bottled drinks, has undergone scrutiny due to high sugar levels, which is the chief cause for health problems such as obesity and diabetes. Due to these growing concerns, KO has faced several legislative pressures. The effect of this has been noticed in the decrease in volume and hence a decrease in earnings. However, KO has constantly increased dividends for 52 years, maintained a flexible balance and an unparalleled distribution, due to which we still maintain a positive outlook.
Mondelez International (MDLZ)
MDLZ has managed to create brand loyalty in the 165 countries it supplies due to superiority of its food products over its competitors. Some of its well-known brands include: Oreo, Milka, Trident, Tang, and Cadbury. The food market is becoming extremely saturated due to the intense competition. In order to maintain its brand manage as leader in the space, MDLZ is merging with DE Blenders to form the world’s largest stand-alone coffee company. Although MDLZ does not pay consistent dividends to shareholders, it has proved its innovative capabilities to meet changing consumer tastes as well as improving productivity, which makes the stock worth holding.