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I'd Buy Chevron Stock Without Any Hesitation Right Now. Here's the Reason Why.
Key Points
Chevron has demonstrated a consistent interest in rewarding shareholders.
Management has raised the dividend at a 7% CAGR for the first 25 years of this century.
The company's breakeven point for dividends and capital expenditures is below $50 per barrel of Brent crude.
From artificial intelligence (AI) leaders to consumer goods stalwarts, several stocks are shining brightly on my radar these days. The rub, however, is that I'm currently looking to fortify my emergency fund rather than add new positions to my portfolio.
But if I did have the funds for a shopping spree, Chevron (NYSE: CVX) would be a stock high on my priority list for one remarkable reason.
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Almost 4 decades of dedication to driving dividends higher
As an oil supermajor, Chevron has a robust presence throughout the energy value chain. However, it's not merely the company's expansive operations that I find alluring.
For 39 consecutive years, Chevron has raised its dividend, putting it in the company of only a few other companies that have demonstrated such a lengthy commitment to rewarding shareholders. The feat becomes even more impressive when one recognizes the challenges management faces in balancing capital allocation between rising dividends and growth projects (which are especially capital-intensive), all amid enduring volatility in energy prices.
And it's not as if the dividend raises have been nominal. For the 25 years ending in 2025, Chevron hiked its dividend at an impressive 7% compound annual growth rate (CAGR).
The allure of Chevron's success in boosting its dividend is compounded by the fact that the company is well-positioned to extend the streak even further. During an August investor presentation, Chevron management noted that from 2026 through 2030, the company's breakeven on dividends and capital expenditures is less than $50 per barrel of Brent crude oil.
Fueling my holdings with Chevron stock isn't far off in my future
Although I can't click the buy button on Chevron stock right now, that's not to say it's not still at the top of my buy list. While I have a niche of my portfolio carved out for growth stocks, I'm also committed to strengthening my passive income flow with more conservative options like Chevron stock.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.