CHEVRON CORP (NYSE:CVX) - A Reliable Dividend Stock Worth Considering

CHEVRON CORP (NYSE:CVX) stands out as a strong candidate for dividend investors, according to our Best Dividend stock screener. The company combines a solid dividend profile with decent profitability and financial health, making it an appealing option for income-focused portfolios.

Dividend Strength

• Attractive Yield: CVX offers a 4.62% dividend yield, well above the S&P 500 average of 2.43%.
• Consistent Growth: The company has increased its dividend at an annual rate of 6.53% over the past five years.
• Reliable Track Record: Chevron has maintained dividend payments for at least 10 years without reductions.

While the payout ratio of 75.24% is on the higher side, indicating some pressure on sustainability, the company’s history of dividend growth and strong cash flow support its ability to maintain payouts.

Profitability & Financial Health

• Decent Profitability: With a Return on Equity (ROE) of 10.49% and a Profit Margin of 8.12%, Chevron remains competitive in its industry.
• Solid Financial Position: The company has a low Debt-to-Equity ratio of 0.17 and a healthy Altman-Z score of 3.59, suggesting minimal bankruptcy risk.
• Positive Cash Flow: Chevron has consistently generated positive operating cash flow, reinforcing its ability to fund dividends.

Valuation Considerations

Chevron trades at a P/E ratio of 15.40, slightly below the S&P 500 average, suggesting reasonable valuation. However, revenue and earnings growth expectations remain modest, which may limit capital appreciation potential.

For a deeper dive into Chevron’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.