Investors looking for stocks with the potential to offer stability and regular income could consider investing in Dividend Aristocrats (companies with a dividend-increasing streak of over 25 years). Energy giant Chevron (NYSE:CVX) is one such company with an impressive history of raising dividends for the past 36 years.
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The company offers a dividend yield of 4.05%, surpassing the sector average of 3.75%. Also, Wall Street analysts anticipate the stock’s price to increase by over 20% in the next 12 months.
Here’s What Makes CVX Stock Worth Considering
The energy sector is known to be highly cyclical, as commodity prices keep fluctuating, influenced by supply and demand forces. However, Chevron has been able to generate stable cash flows with support from its diversified business offerings.
Furthermore, CVX announced plans to strengthen its productivity in Guyana with the acquisition of Hess Corp. (HES). It is worth mentioning that UBS analyst Josh Silverstein is optimistic about the Hess acquisition and Chevron’s Tengizchevroil (joint venture between Chevron, ExxonMobil (XOM), KazMunayGas, and LukArco) operations.
He maintained a Buy rating on CVX stock, and his price target of $185 implies 24% upside potential.
Is CVX a Buy or Sell?
Overall, the Street has a Moderate Buy consensus rating on Chevron based on 12 Buys and six Holds. The average CVX price target of $179.59 implies a 20.4% potential upside from the current level. Over the past year, shares of the company have declined by about 11%.
Ending Thoughts
With CVX’s reliable dividend history and promising growth prospects, the company seems to be an appealing choice for income-focused investors seeking stability and long-term value within the energy sector.
