Why is it one of the Best Cyclical Stocks to Own in 2019? In 2018, Chevron earned $14.8 billion in profits during a period of declining oil prices. The company expects oil and gas production to increase 4% - 7% in 2019. At the same time, it has reduced production costs by 50% over the past four years. Combined with rising oil prices this year, Chevron could produce record profits in 2019. And when Chevron is profitable, it rewards its shareholders. In 2018, the company paid out $8.5 billion in cash dividends and repurchased $1.7 billion of its stock. This year, Chevron intends to raise its quarterly dividend by 6% and repurchase at least another $1 billion of stock. With a dividend yield of 4%, Chevron is one of the few businesses that is equally appealing to growth and income investors alike. Barrick Gold (NYSE: GOLD) What is it? Barrick Gold is based in Toronto, Canada and employs over 10,000 people on four continents. Barrick operates gold and copper mines all over the world. In 2017, 53% of Barrick's production came from North America, 25% from Africa, 13% from South America, and 9% from the Australia-Pacific region. Gold mining technology has not changed much over the past hundred years, as explained in this video. Due to its recent merger with Rangold Resources, Barrick will control half of the world's 10 highest-rated gold producing properties. In addition, Barrick recently entered into a cross-ownership agreement with China's state-owned Shandong Gold Group, with which it jointly owns and operates a mining facility in Argentina. Why is it one of the Best Cyclical Stocks to Own in 2019? There are three reasons most investors own gold, and this year all of those rationales are likely to pan out: - Gold is widely viewed as a hedge against inflation even though its track record as such has been inconsistent.
- Second, gold is still used by many wealthy investors as protection against a weakening dollar.
- Third, gold is perhaps the only commodity that is universally regarded as a store of value since there is so little of it.
We believe all three of those factors will line up this year, making Barrick one of the best cyclical stocks to own in 2019. ABB Ltd (NYSE: ABB) What is it? ABB is an industrial automation conglomerate headquartered in Zurich, Switzerland. Its 147,000 employees manufacture and sell products to customers in more than 100 countries. Its customers operate in 23 industries including automotive, oil & gas, and food & beverage. The company sells products through four divisions: power grids, electrification, industrial automation, and robotics and motion. Its revenue stream is well diversified with 35% of its sales in Europe, 31% in the Americas, and 34% in Asia, the Middle East, and Africa. Why is it one of the Best Cyclical Stocks to Own in 2019? Recently, ABB shifted its focus away from its traditional power grid business towards digital automation. The company believes that will result in greater scalability and less dependence on large hardware orders to sustain growth. ABB estimates that it will receive roughly $7.7 billion in net cash proceeds from the sale of 80% its power grids assets to Hitachi. The company has stated that it will return 100% of the net cash proceeds to its shareholders via share repurchases or a special dividend. It has also stated its intention to maintain the current level of its cash dividend, which yields close to 4%. The combined value of all those cash payments to ABB's shareholders should make it one of the best cyclical stocks to own in 2019. But what if we told you there's a way to make money, regardless of the economic cycle? It involves the president of the United States and it's an opportunity to the tune of $287,000. We're calling it the "Trump Impeachment Trade" and it's your opportunity to make 28x your cash in the next 145 days if Trump gets impeached. Amid the scandals, allegations of Russian collusion, and the longest government shutdown in history, there lies an incredible chance for investors to quickly reap a windfall. The best part is, this trade can still make you a fortune, even if impeachment goes nowhere. If Trump gets impeached, you make money. If he doesn't, you still make money. Want to see how it works? Click here now. | 
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