Chevron: Fill Up The Income Tank And Buy This 4%-Yielding Dividend Aristocrat

Summary

• As a Dividend Aristocrat, Chevron could fit well with my goal of building a sustainable and growing stream of passive income.
• The company's capex and acquisitions should drive healthy growth in the future.
• Chevron's modest leverage and industry leadership earn it an AA- credit rating from S&P on a stable outlook.
• The supermajor appears to be trading at a 6% discount to fair value.
• Chevron could double the S&P in the next two years and outperform by as wide of a margin over the coming 10 years.

A Texaco-branded Chevron gas station.

hapabapa/iStock Editorial via Getty Images

My primary objective as an investor is to build a viable and rising stream of passive income. Why dividend growth investing?

The idea is that this approach will hopefully help

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.