CHEVRON CORP (NYSE:CVX) - A Reliable Dividend Stock With Solid Fundamentals

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 stable profitability and financial health, making it an appealing option for income-focused portfolios.

Dividend Strength

• Attractive Yield: CVX offers a yearly dividend yield of 4.44%, well above the S&P 500 average of 2.34%.
• Consistent Growth: The company has increased its dividend at an average annual rate of 6.53% over the past years.
• Reliable Track Record: CVX has paid dividends for at least 10 years without reductions, demonstrating commitment to shareholders.

Profitability & Financial Health

• Stable Margins: CVX maintains solid profitability with an 8.12% profit margin and an 11.93% operating margin, both showing recent improvement.
• Strong Solvency: With a Debt-to-Equity ratio of 0.17, CVX is less reliant on debt than many peers. Its Altman-Z score of 3.66 indicates low bankruptcy risk.
• Cash Flow Strength: The company generates consistent cash flow, supporting dividend sustainability despite a high payout ratio of 75.24%.

While CVX faces challenges in earnings growth, its valuation remains reasonable with a P/E ratio of 16.12, slightly below the industry average.

For a deeper look, review the full fundamental report on CVX.

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Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.