Chevron: A Top High-Yield Dividend Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Fool
- Earnings Volatility Analysis: Chevron's upstream profits plummeted from $18.6 billion in 2024 to $12.82 billion in 2025 primarily due to falling oil prices, yet downstream profits surged by 75%, demonstrating the company's ability to maintain profitability across varying market conditions.
- Cash Flow and Capital Expenditures: The company generated an additional $2.4 billion in cash flow from operations, supporting larger capital expenditures, stock buybacks, and its growing dividend, indicating a strong financial position that allows for continued investment even in adverse conditions.
- Acquisition and Market Expansion: Chevron's acquisition of Hess enhances its production capabilities in Guyana, forming a consortium with ExxonMobil and CNOOC, which further solidifies its market position in South America and is expected to drive future growth.
- Dividend Growth and Investment Appeal: Management announced a 4% increase in dividends on January 30, marking the 38th consecutive year of dividend growth, showcasing the company's ability to provide stable returns in a volatile oil price environment, thus attracting investors seeking reliable income.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 182.400
Low
158.00
Averages
176.95
High
206.00
Current: 182.400
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Business Development Potential: This investment will enable Bangchak to further develop its overseas fuel retail business, expand into a fully integrated marine fuels business, enhance its customer base, and strengthen energy logistics capabilities, thereby creating new long-term growth opportunities.
- Strategic Implications: Through this acquisition, Bangchak not only strengthens its position in the energy market but also leverages Chevron's resources and network to drive sustainable global business growth.
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- Brand Continuity: Following the acquisition, Bangchak will continue to operate service stations under the Caltex brand through a licensing agreement with Chevron, ensuring brand continuity and laying the groundwork for future market expansion.
- Business Development Potential: This investment will enable Bangchak to further develop its overseas fuel retail business, expand into a fully integrated marine fuels business, enhance its customer base, and strengthen energy logistics capabilities, thereby creating new long-term growth opportunities.
- Strategic Implications: Through this acquisition, Bangchak not only strengthens its position in the energy market but also leverages Chevron's resources and network to drive sustainable global business growth.
See More
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- Oil Price Recovery: As of February 2026, West Texas Intermediate (WTI) prices have rebounded to $57 per barrel, down $15 from early 2025, indicating renewed investor interest in energy stocks amidst a backdrop of previously declining oil prices.
- Energy Sector Leadership: The State Street Energy Select Sector SPDR ETF has surged 23% year-to-date, significantly outperforming the S&P 500's 2% increase, reflecting a resurgence of investor confidence in the energy sector and suggesting potential future investment opportunities.
- Impact of U.S. Foreign Policy: U.S. military actions in Venezuela have sparked optimistic expectations for major oil companies like Chevron and ExxonMobil, which may gain access to the world's largest oil reserves, further driving their stock prices higher.
- Shift in Investor Sentiment: As interest in AI-related stocks wanes, investors are turning to energy stocks as a reliable long-term investment choice, although the market must remain cautious of potential geopolitical risks.
See More
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- Energy Stock Surge: As of February 11, 2026, the State Street Energy Select Sector SPDR ETF has risen 23% year-to-date, significantly outperforming the S&P 500's less than 2% increase, indicating strong investor confidence in the energy sector.
- Impact of U.S. Policy: Following the U.S. military's detention of Venezuelan President Maduro on January 3, investors believe that major oil companies like Chevron and ExxonMobil may gain special access to Venezuela's 19.4 billion barrels of oil reserves, potentially driving oil prices higher and enhancing their market positions.
- Escalating Geopolitical Risks: With rising tensions between the U.S. and Iran, particularly the deployment of a carrier group in the region, the market anticipates that any conflict could lead to a temporary spike in global oil prices, further stimulating energy stock performance.
- Shift to Energy Investments: Amidst fatigue in AI-related stocks, some investors are reallocating funds to energy stocks, viewing them as a more reliable long-term investment, although experts caution that restoring Venezuela's oil sector will require years and substantial capital.
See More
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- Acquisition Plan: Valero Energy (VLO) is poised to purchase up to 6.5 million barrels of Venezuelan crude in March, potentially becoming the largest foreign refiner of Venezuelan oil since the U.S. captured President Maduro, significantly enhancing its market position.
- Production Increase: If Valero secures 10 or more cargoes, it could achieve a refining capacity of approximately 210,000 barrels per day, potentially surpassing Chevron (CVX) as the top U.S. refiner of Venezuelan crude, further solidifying its industry leadership.
- Chevron's Supply: Chevron is expected to increase its Venezuelan crude exports from 220,000 barrels per day in January to 300,000 barrels per day in March, with Valero set to receive most of this supply, ensuring sustained growth in its refining capacity.
- Refining Capacity Expansion: Following an expansion at its Port Arthur refinery, Valero's total refining capacity for Venezuelan crude has reached approximately 240,000 barrels per day, positioning the company to enhance its competitiveness in the heavy oil market.
See More
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See More
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Valero's Acquisition: Valero is set to purchase a significant amount of Venezuelan crude oil cargoes from Chevron, according to sources.
Market Impact: This move indicates a potential shift in the oil market dynamics, particularly concerning Venezuelan oil exports.
See More
