Exxon Mobil Corporation (XOM), Chevron Corporation (CVX): This Industry Produces Cash, Every Day, All Day Long

Bottom Line

Chevron Corporation (NYSE:CVX) provides plenty of yield and growth opportunities to remain or become a part of a portfolio looking for exposure to tangible assets along with a fair amount of equity beta. Portfolios looking to trim back some of their hard asset exposures such as real estate and commodities should also consider Chevron. The current yield is comparable to publicly traded real estate investment trusts. The capital gain portion of the total return should be less sensitive to interest rates, especially if they begin rising. Chevron Corporation (NYSE:CVX) should provide at least some of the inflation protection that an investor might be trying to gain exposure to through commodities. Exxon Mobil Corporation (NYSE:XOM) is another fine choice but is a clear second to Chevron. Don’t rush out to buy BP plc (ADR) (NYSE:BP).

Vanina Egea has no position in any stocks mentioned. The Motley Fool recommends Chevron. Vanina is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article This Industry Produces Cash, Every Day, All Day Long originally appeared on Fool.com and is written by Vanina Egea.

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