Dec. 2 at 12:18 PM
$CVX CVX stock price is down over the past one- and three-year periods, a time when the S&P 500 has performed very well. On a more positive note, it has performed much better over the past five years, though it has still trailed the S&P 500.
However, these stock returns are an incomplete picture because they don't include Chevron's dividend payments. That's noteworthy because Chevron pays a high-yielding and steadily rising dividend. The oil giant's payout currently yields 4.5%, triple the S&P 500's level (1.2%). Chevron has increased its payment for 38 straight years. Chevron currently has the lowest breakeven level in the industry at
$30 a barrel. Meanwhile, the company's investments have put it in the position to deliver significant free cash flow growth over the next five years, even if oil prices don't improve. Chevron's dividend and its growth investments can help provide the fuel to produce stronger returns over the longer term.
