CHEVRON CORP (NYSE:CVX) stands out as a strong candidate for dividend investors, according to our Best Dividend Stocks screen. The company combines a high dividend rating with solid profitability and financial health, making it an attractive option for income-focused portfolios.
Dividend Strength
- Attractive Yield: CVX offers a dividend yield of 4.99%, well above the S&P 500 average of 2.41%.
- Consistent Growth: The company has increased its dividend at an annual rate of 6.53% over the past years.
- Reliable Track Record: CVX has paid dividends for at least 10 years without reductions, demonstrating stability.
- Payout Ratio: While the current payout ratio of 66.82% is on the higher side, the dividend growth aligns with earnings growth, suggesting sustainability.
Profitability & Financial Health
- Solid Margins: CVX maintains a 9.13% profit margin and a 12.76% operating margin, in line with industry peers.
- Strong Solvency: The company has a healthy Debt-to-Equity ratio of 0.13 and an Altman-Z score of 3.59, indicating low bankruptcy risk.
- Liquidity: With a Current Ratio of 1.06, CVX is well-positioned to meet short-term obligations.
Valuation & Growth Considerations
- Reasonable Valuation: CVX trades at a P/E ratio of 14.89, slightly below the S&P 500 average.
- Modest Growth Outlook: Earnings are expected to grow at 7.06% annually, though revenue projections are weaker.
For a deeper dive into CVX’s fundamentals, review the full fundamental report here.
Our Best Dividend Stocks screener provides more high-quality dividend stock ideas.
Disclaimer
This is not investment advice. Always conduct your own research before making investment decisions.
