5 Best Stocks to Buy for Deflation

In this article, we discuss the 5 best stocks to buy for deflation. If you want to see more stocks in this selection, click 11 Best Stocks To Buy For Deflation.

05. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders as of Q3, 2022: 66

Chevron Corporation (NYSE:CVX) is a San Ramon, California-based diversified, integrated oil company that is involved in the upstream, midstream, and downstream segments of the energy value chain. Chevron Corporation (NYSE:CVX) was able to capitalize on the high oil prices in the wake of Russia’s Ukraine invasion as it reported $11.2 billion in profits for its third fiscal quarter – almost double what the firm had raked in during the year-ago quarter. In the third quarter of 2022, Chevron Corporation (NYSE:CVX) distributed $2.7 billion in dividends to shareholders, up 6% from the same period last year. It currently pays a quarterly dividend of $1.42 per share and has a dividend yield of 3.25%, as recorded on December 21. The company has raised its dividends for 25 years in a row, which makes it one of the best stocks to buy for deflation.

Piper Sandler analyst Ryan Todd on December 19, maintained an Overweight rating on Chevron Corporation (NYSE:CVX) but lowered the price target on the shares to $199 from $206. “Even after two years of outperformance,” the analyst remains constructive on the energy complex into 2023.

66 of the 920 hedge funds polled by Insider Monkey for 2022’s September quarter had bought Chevron Corporation (NYSE:CVX)’s shares. Warren Buffett’s Berkshire Hathaway is Chevron Corporation (NYSE:CVX)’s largest shareholder. It owns 165 million shares that are worth $23 billion.

In its Q1 2022 investor letter, Diamond Hill, an asset management firm, highlighted a few stocks and Chevron Corporation (NYSE:CVX) was one of them. Here is what the fund said:

“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”