Chevron Energy Stock To Buy

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Chevron Energy Stock To Buy

Chevron: A High-Yield Energy Stock To Buy

The stock market is trading at record highs while the US Federal Reserve policy hints at more rate hikes. Amidst all of this, it's normal to feel worried.

However, there's one income stock from the energy sector which can prove to be a good investment. We are talking about Chevron (CVX). It is a high-yield stock that can appeal to those who seek the stability of dividends.

Chevron Has Raised Its Dividend For 39 Years

You can consider Chevron (CVX) if you are a long-term investor. While the stock may experience volatility in the short term, it can prove to be a solid investment in the long term.

One of the strongest things about Chevron (CVX) is its dependable dividend. It is an integrated oil company that has been raising its dividend for 39 years in a row. During all of these years, Chevron continued to pay a dividend despite the recessions, pandemic, oil price crashes and so on.

The forward dividend yield of Chevron is 3.5%. This is a strong dividend yield compared with the overall US market.

Chevron has a massive business in the oil and gas industry. The latest stats show that Chevron is the 3rd largest energy company in terms of market cap. Chevron is also a big player in natural gas production. The company also has the highest cash margins in the industry.

What's more impressive is that Chevron continues to deliver strong growth. The company has acquired Hess, which has further strengthened the company's position.

A look at the company's cash reserves and strong earnings means Chevron can continue to carry its dividend program. Even if Brent crude oil prices fall below $50, it won't be a problem for Chevron.

Even if we don't consider the dividend for a second, it is clear that Chevron is poised for strong growth in 2026, 2027, and beyond. This is yet another plus point that makes Chevron a good energy stock to buy.

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