Why Yield-Focused Investors Favor Chevron (CVX) in the Dogs of the Dow Portfolio

Chevron Corporation (NYSE:CVX) is included among the 11 Dogs of the Dow Dividend Stocks to Buy Now.

Why Yield-Focused Investors Favor Chevron (CVX) in the Dogs of the Dow Portfolio

An aerial view of an oil rig at sea, the sun glinting off its structure.

It is currently facing some company-specific challenges, including a complicated merger and operations in politically unstable regions. However, these issues are unlikely to affect its long-term prospects. Income-focused investors can generally feel confident investing in Chevron.

Chevron Corporation (NYSE:CVX)’s integrated business model, covering everything from exploration and production to refining and chemicals, offers operational flexibility and acts as a natural hedge against fluctuations in energy prices, enhancing its resilience through market cycles. Unlike many competitors who chase volume growth, Chevron takes a disciplined approach, investing only in its highest-return projects, avoiding overexpansion during booms, and making strategic, value-adding acquisitions.

This strategy, along with a strong balance sheet, establishes Chevron Corporation (NYSE:CVX) as a leading operator with the financial strength to endure downturns and seize growth opportunities. The company has been growing its dividends for 38 consecutive years and currently offers a quarterly dividend of $1.71 per share. As of July 26, the stock has a dividend yield of 4.42%.

While we acknowledge the potential of CVX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CVX and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.