Best Dividend Stock to Buy Now and Hold Forever
Chevron, one of the world's largest integrated energy companies, has raised its dividend annually for 39 consecutive years. It pays a forward yield of 3.9% and its projected 2026 EPS of $14.11 should easily cover its forward annual dividend rate of $7.12.
Intelligence analysis by Llama
Chevron's scale and diversification make it a dependable dividend stock. It owns upstream, midstream, and downstream businesses, which makes it more diversified and resilient than companies that are too focused on a single market.
Imagine you have a big company that owns many different parts of the energy business. This company, Chevron, has been paying its investors a steady stream of money for 39 years. It's like a reliable income source that can help you grow your money over time.
Analysis
A $60B Vote of Confidence
Chevron's ability to maintain its dividend streak for 39 consecutive years is a testament to its financial stability and resilience. This makes it an attractive option for investors looking for a reliable dividend stock. Chevron's scale and diversification make it a dependable dividend stock. It owns upstream, midstream, and downstream businesses, which makes it more diversified and resilient than companies that are too focused on a single market.
Why Chevron is a Great Stock to Buy and Hold
At $188 per share, Chevron still looks like a bargain at 12 times this year's earnings. From 2025 to 2028, analysts expect its EPS to grow at a 25% CAGR as oil prices remain elevated, it ramps up production, and it implements cost-cutting measures to boost operating margins. So if you're looking for a simple, stress-free way to profit from the ongoing energy boom while earning some reliable income, Chevron checks all the right boxes.
The Road Ahead
Chevron's ability to maintain its dividend streak for 39 consecutive years is a testament to its financial stability and resilience. This makes it an attractive option for investors looking for a reliable dividend stock. Chevron's scale and diversification make it a dependable dividend stock. It owns upstream, midstream, and downstream businesses, which makes it more diversified and resilient than companies that are too focused on a single market.
Key points
- Chevron has raised its dividend annually for 39 consecutive years.
- It pays a forward yield of 3.9% and its projected 2026 EPS of $14.11 should easily cover its forward annual dividend rate of $7.12.
- Chevron's scale and diversification make it a dependable dividend stock.
- It owns upstream, midstream, and downstream businesses, which makes it more diversified and resilient than companies that are too focused on a single market.
If Chevron continues to maintain its dividend streak, it could become one of the elite Dividend Kings in just over a decade. This would make it an even more attractive option for investors looking for a reliable dividend stock.
However, if oil prices were to drop significantly, Chevron's ability to maintain its dividend streak could be threatened. This would make it a riskier investment option for investors.
