Chevron Rewards Shareholders -- Huge -- January 25, 2023

Up $4.70 / share after hours. Up almost 3% after hours. 

Fast Money panel: jaws dropped -- $75-billion buyback! On top of the recent $25-billion buyback. 

[Reminder: I don't watch CNBC except when there is news like today. LOL.] 

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Investors need to ask: what would you think of an investment opportunity if an outside investor swooped in and bought 20% of the entire Chevron company? The company has a P/E of 10, and pays over 3%. Yeah, that's what I thought.

Link here:

Energy giant Chevron announced a $75 billion stock buyback program and a dividend hike on Wednesday evening.

Shares of Chevron were up 3% in extended trading.

The buyback program will become effective on April 1, 2023, with no set expiration date, the company said in a press release. The dividend hike increases Chevron’s per share payout to $1.51 per share from $1.42, and will be payable on March 10, 2023.

Chevron’s market cap was roughly $350 billion as on Wednesday’s market close, meaning that the buyback would represent more than 20% of the company’s stock at current prices.

This buyback plan follows a $25 billion plan enacted in 2019. The old plan will be terminated at the end of March. For the third quarter of 2022 — the most recent quarter that Chevron has reported — the company repurchased $3.75 billion of shares.