Chevron (CVX): A Top Crude Oil Stock to Invest in

Chevron Corporation (NYSE:CVX) is included among the Best Crude Oil Stocks to Buy According to Hedge Funds.

A top choice for investors looking for passive income, Chevron Corporation (NYSE:CVX) returned a record $27 billion to its shareholders in 2024. The company has been growing its dividends for 38 consecutive years and boasts an annual dividend yield of 4.38%, putting it among the 11 Dogs of the Dow Dividend Stocks to Buy Now.

Chevron Corporation (NYSE:CVX) recently made headlines after it completed the acquisition of Hess for roughly $53 billion, adding the latter’s coveted 30% stake in the Stabroek Block in offshore Guyana to the company’s portfolio. The Warren Buffett-backed company already boasts the lowest breakeven levels in the sector at around $30 per barrel, and the integration of the new high-value assets from Hess should help the company grow its production while maintaining low costs.

To make sure it can thrive even during low-priced environments, Chevron Corporation (NYSE:CVX) remains focused on capital discipline and reducing costs. The oil and gas giant is targeting $2 billion – $3 billion in structural cost savings by the end of 2026, and its CapEx budget for 2025 represents a $2 billion reduction from last year.

Chevron Corporation (NYSE:CVX) manufactures and sells a range of high-quality refined products, including gasoline, diesel, marine and aviation fuels, premium base oil, finished lubricants, and fuel oil additives.

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.