Chevron's 4.2% Yield Is A Steal (Upgrade)

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Summary

  • OPEC's supply cuts until the end of next year create a favorable backdrop for Chevron Corporation.
  • Despite recent stock price weakness, Chevron could see profit growth with OPEC's price support.
  • Chevron's low profit multiple and potential for dividend growth make it an attractive investment option.

Chevron gas station

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In June the Organization of Petroleum Exporting Countries, OPEC, agreed to supply cuts until the end of the next year which obviously creates a favorable backdrop for big U.S. oil majors like Chevron Corporation (NYSE:CVX).

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This article was written by

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A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CVX over 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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