CVX Dividend Yield data, as reported by YCharts, indicates a significant spike in 2020 attributed to historical events surrounding the pandemic. When excluding this anomaly, Chevron’s yield is noted to be nearly at its highest point since 2016. Despite this, the company is seen to have a clear trajectory towards increased production and cash flow, supported by a potential growth catalyst in Hess. Additionally, Chevron boasts a strong balance sheet with its lowest leverage ratio in years.
This positive outlook suggests that the stock’s elevated yield should not be seen as a cause for concern but rather as a promising investment opportunity. While there may be a possibility of a further decline in the stock price should a recession occur, investors are encouraged to consider adding more shares, given the company’s ability to navigate challenges. Warren Buffett’s decision to retain his stake in Chevron while increasing his cash holdings aligns with the underlying fundamentals, indicating that Chevron’s stock is currently undervalued.
The question of whether to invest $1,000 in Chevron at this juncture warrants careful consideration. It is worth noting that The Motley Fool Stock Advisor analyst team has recently identified what they deem to be the top 10 stocks for investors to consider, with Chevron not making the list. The selected 10 stocks are believed to have the potential to generate significant returns in the foreseeable future, akin to the success seen with Nvidia’s inclusion on a similar list back in 2005.
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As of the latest available data, December 30, 2024, it is disclosed that Bank of America is an advertising partner of Motley Fool Money, while American Express similarly collaborates with Motley Fool Money. Furthermore, it is highlighted that Justin Pope holds positions in Chevron and Coca-Cola. The Motley Fool explicitly discloses its positions in and recommendations of various companies including Apple, Bank of America, Berkshire Hathaway, Chevron, and S&P Global in adherence to disclosure policies.
