The global energy market has been upended by the geopolitical conflict in the Middle East, with reduced supply driving up oil and natural gas prices. However, companies like Chevron (NYSE: CVX), while benefiting from today's high energy prices, think in decades, not days, weeks, or months. In fact, volatility is the norm for the energy sector. Management's long-term approach is why Chevron is actively looking to invest in the conflict-torn Middle East. But what does this really mean for dividend investors?
There are many reasons to like Chevron as an investment. For example, it is large and geographically diverse, with exposure to the entire energy value chain. But one of the biggest is the company's consistency, which is highlighted by a 38-year streak of annual dividend increases. Add in a well-above market 3.5% yield, and the story gets even better for dividend lovers seeking to add some energy exposure to their portfolios.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Chevron's willingness to look beyond the conflict that is raging today is part of the story, too. In fact, it is planning to invest in Iraq and hopes to help build a pipeline that will allow energy companies to avoid traversing the Strait of Hormuz. Both could help the company maintain its impressive dividend growth streak, but they aren't the real dividend growth story investors need to be watching.
The real dividend growth story is Chevron's ability to think and act with a long-term mindset. The Iraq investment and pipeline are merely examples of decisions that allow the company to keep increasing its dividend. But what enables such decisions in the first place is the company's financial strength, as highlighted by its impressive balance sheet. At the end of the second quarter of 2026, its debt-to-equity ratio was 0.2x, second only to ExxonMobil (NYSE: XOM) in its peer group.
#NVIDIA #signal
There are many reasons to like Chevron as an investment. For example, it is large and geographically diverse, with exposure to the entire energy value chain. But one of the biggest is the company's consistency, which is highlighted by a 38-year streak of annual dividend increases. Add in a well-above market 3.5% yield, and the story gets even better for dividend lovers seeking to add some energy exposure to their portfolios.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Chevron's willingness to look beyond the conflict that is raging today is part of the story, too. In fact, it is planning to invest in Iraq and hopes to help build a pipeline that will allow energy companies to avoid traversing the Strait of Hormuz. Both could help the company maintain its impressive dividend growth streak, but they aren't the real dividend growth story investors need to be watching.
The real dividend growth story is Chevron's ability to think and act with a long-term mindset. The Iraq investment and pipeline are merely examples of decisions that allow the company to keep increasing its dividend. But what enables such decisions in the first place is the company's financial strength, as highlighted by its impressive balance sheet. At the end of the second quarter of 2026, its debt-to-equity ratio was 0.2x, second only to ExxonMobil (NYSE: XOM) in its peer group.
#NVIDIA #signal
5 days ago
