Is Chevron (CVX) a Good Long-Term Stock for Halal Portfolios?

Chevron Corporation (NYSE:CVX) is included among the 11 Best Halal Dividend Stocks to Buy Now. An aerial view of an oil rig at sea, the sun glinting off its structure. The company has long been a reliable choice for investors, particularly those focused on dividends. It has consistently delivered strong cash flows and has increased its dividend for 38 consecutive years. Although its share price tends to move with shifts in oil prices— mirroring the broader volatility seen in the energy sector— Chevron has remained a rewarding option for long-term dividend-focused investors. Chevron Corporation (NYSE:CVX)’s upstream segment remains a major strength and is expected to keep supporting the company’s solid financial performance. With contributions from its TCO joint venture in Kazakhstan and its production assets in the Permian Basin and Gulf of America, the company anticipates an additional $10 billion in free cash flow by 2026 if Brent Crude averages $70 per barrel. If prices average $60 per barrel instead, the company still expects around $9 billion in incremental free cash flow from this segment. Currently, Chevron Corporation (NYSE:CVX) offers a quarterly dividend of $1.71 per share and has a dividend yield of 4.56%, as of July 18. 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. READ NEXT: 13 Best Industrial Dividend Stocks to Buy Right Now and 10 Best Passive Income Stocks to Buy Now. Disclosure: None.