Striking Oil: Why Chevron Remains A Strong Buy

Leo Nelissen
09-21

Summary

  • Chevron's massive reserves, efficient operations, and consistent production growth, especially in the Permian Basin, make it a top pick for dividend investors.
  • The company offers strong shareholder returns with a 4.5% dividend yield and aggressive buybacks, translating to a 9.2% annualized yield.
  • Trading at just 7.8x OCF, Chevron is undervalued with a 43% potential upside based on projected cash flow growth.
  • Despite risks like oil price volatility and regulatory scrutiny, Chevron's disciplined financial management and compelling valuation make it a "Strong Buy."

JHVEPhoto/iStock Editorial via Getty Images

Introduction

I sometimes jokingly say that I have a "win-win" strategy. When my stocks go up, I win - this one is obvious. When my stocks go down, I get to buy great companies at great prices - I win again.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment
1