Is Chevron Corporation (CVX) One of the Best Energy Stocks for Passive Income Investors?

Chevron Corporation (NYSE:CVX) is included among the 10 Best Passive Income Stocks to Buy Now.

Chevron Corporation (NYSE:CVX) is popular among dividend investors because of its solid cash position. In the first quarter of 2025, the company reported an operating cash flow of $5.2 billion, and its free cash flow came in at $1.3 billion. During the quarter, it returned $6.9 billion to shareholders, including $3 billion in dividends.

In addition, Chevron Corporation (NYSE:CVX) has returned over $78 billion to shareholders over the past three years. Management emphasized that, despite shifting market dynamics, the company’s robust asset portfolio, solid financial position, and ongoing commitment to disciplined capital spending and cost control are expected to drive leading free cash flow growth by 2026.

Chevron Corporation (NYSE:CVX) currently offers a quarterly dividend of $1.71 per share and has a dividend yield of 4.42%, as of July 10. The company has been rewarding shareholders with growing dividends for the past 38 consecutive years.

While we acknowledge the potential of CVX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.