Is Chevron a Smart Investment in Uncertain Times?
May 25, 2023
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When it comes to investing, there is no sure thing in uncertain times. With oil market volatility and the looming debt ceiling crisis, investors must make careful decisions about which stocks to put their money into. One such stock, Chevron Corporation ($NYSE:CVX), could be a wise choice for dividend investment. Chevron Corporation is an American multinational energy corporation based in San Ramon, California. It is the eleventh-largest company in the world by revenue and is engaged in every aspect of the oil, gas, and geothermal energy industries. Chevron is involved in exploration, production, refinement, distribution, and marketing of oil-related products. It also owns and operates various types of industrial plants and refineries, as well as petrochemical facilities. One of the main advantages of investing in Chevron is the company’s strong dividend yield. The company also offers a stable and diverse portfolio of assets and business operations around the world, making it a relatively safe bet for investors even in uncertain times.
Additionally, Chevron has been very successful in reducing its debt levels over the past few years, which could provide a buffer against any economic downturns. Chevron has also invested heavily in expanding its renewable energy operations, which could be beneficial for both investors and the environment in the long run. All in all, Chevron Corporation is a solid stock to consider for dividend investors looking for steady income in uncertain times. Its strong dividend yield, diverse portfolio, and commitment to renewable energy make it a smart choice for those seeking sustainable income investments.
Dividends
CHEVRON CORPORATION is a wise investment in uncertain times especially if you are looking for dividend stocks. In the last 3 years CHEVRON CORPORATION has issued annual dividend per share of 5.77, 5.68, and 5.31 USD, with dividend yields from 2021 to 2023 of 3.49%, 3.69%, and 5.22%, resulting in an average dividend yield of 4.13%. As an investor, you can take confidence in the fact that CHEVRON CORPORATION provides predictable and reliable dividend income in addition to any potential capital gains.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Chevron Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 232.25k | 35.78k | 15.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Chevron Corporation. More…
| Operations | Investing | Financing |
| 41.55k | -11.45k | -23.62k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Chevron Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 255.89k | 255.89k | 84.81 |
Key Ratios Snapshot
Some of the financial key ratios for Chevron Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.7% | 636.5% | 21.8% |
| FCF Margin | ROE | ROA |
| 13.6% | 19.9% | 12.4% |
Share Price
However, it is important to know that on Wednesday, Chevron Corporation stock opened at $158.0 and closed at $157.3, up by 0.3% from the prior closing price of 156.8. This indicates that the company is stable and holds true to its promise of long-term growth. Furthermore, Chevron consistently pays dividends to their shareholders, which translates to more long-term value for investors. Additionally, with their strong financials and excellent management team, Chevron is well-positioned to weather any economic downturns and come out even stronger in the end. Live Quote…
Analysis
At GoodWhale, we’ve conducted an analysis of CHEVRON CORPORATION‘s wellbeing. Our Risk Rating has determined that CHEVRON CORPORATION is a low risk investment in terms of financial and business aspects. However, upon closer inspection of the company’s balance sheet, we have detected one risk warning. If you’d like to know more about this risk warning, please become a registered user at GoodWhale. We provide detailed insight into CHEVRON CORPORATION’s financial health, so you can make an informed decision when it comes to investing. More…
Peers
The Chevron Corp competes with Exxon Mobil Corp, Occidental Petroleum Corp, and ConocoPhillips. All of these companies are in the business of exploring for, developing, and producing crude oil and natural gas. Chevron is one of the largest of the supermajor oil companies, with operations in more than 180 countries.
– Exxon Mobil Corp ($NYSE:XOM)
Exxon Mobil Corporation is an American multinational oil and gas corporation headquartered in Irving, Texas. It is the largest direct descendant of John D. Rockefeller’s Standard Oil Company, and was formed on November 30, 1999 by the merger of Exxon (formerly the Standard Oil Company of New Jersey) and Mobil (formerly the Standard Oil Company of New York). The world’s seventh largest company by revenue, ExxonMobil is also the seventh largest publicly traded company by market capitalization. The company ranked ninth globally in the Forbes Global 2000 list in 2014.
– Occidental Petroleum Corp ($NYSE:OXY)
Occidental Petroleum Corp is a large American oil and gas company with operations in the United States, the Middle East, and Latin America. The company has a market cap of 63.77B as of 2022 and a return on equity of 29.73%. Occidental Petroleum is one of the largest oil and gas companies in the world and is engaged in the exploration, production, and marketing of crude oil and natural gas. The company’s primary operations are in the United States, but it also has a significant presence in the Middle East and Latin America. Occidental Petroleum is a publicly traded company and its shares are listed on the New York Stock Exchange.
– ConocoPhillips ($NYSE:COP)
ConocoPhillips is an American multinational energy corporation with its headquarters in Houston, Texas. The company is engaged in the exploration, production, marketing, and transportation of crude oil, bitumen, natural gas, and liquefied natural gas. As of December 31, 2019, the company had estimated proved reserves of 8.4 billion barrels of oil equivalent.
ConocoPhillips has a market capitalization of $150.08 billion as of January 2021. The company’s return on equity was 30.9% for the year ended December 31, 2020.
ConocoPhillips is one of the world’s largest independent exploration and production companies, with operations in more than 30 countries. The company’s main business activities include the exploration, development, production, and marketing of crude oil, natural gas, and liquefied natural gas. ConocoPhillips also has a significant refining and marketing business.
Summary
Chevron Corporation is an attractive option for dividend investors seeking a secure stream of income. The company has a track record of consistently paying dividends and its long-term earnings outlook remains strong. In addition, Chevron has a low debt-to-equity ratio, with low long-term debt, and strong cash flow that can cover its dividend payments. Despite uncertainty in oil prices and the debt ceiling, Chevron continues to be a reliable stock for dividend investors due to its healthy balance sheet, strong cash flow, and consistent track record of paying dividends.
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