Chevron (CVX): A Defensive Retirement Dividend Stock with Energy Sector Strength

Chevron Corporation (NYSE:CVX) is included among the 10 Best Dividend Stocks to Buy for Retirement.

Chevron Corporation (NYSE:CVX) produces and markets a variety of top-grade refined products, such as gasoline, diesel, aviation and marine fuels, premium base oils, finished lubricants, and fuel additives. The company’s balance sheet is a key strength that investors shouldn’t ignore. With a debt-to-equity ratio of just 0.2 at the end of the second quarter, the company stands out as one of the financially strongest among its integrated energy peers. While market watchers often focus more on oil prices and global events, Chevron’s resilience is closely linked to its solid financial foundation.

A recent example of this strength is its $53 billion acquisition of Hess, a move that reflects not only Chevron Corporation (NYSE:CVX)’s scale but also its financial capacity to take on major strategic deals.

Chevron Corporation (NYSE:CVX)’s dividend policy is also very significant for income investors. The company has been increasing its dividends for 38 consecutive years. It currently pays a quarterly dividend of $1.71 per share and has a dividend yield of 4.45%, as of July 30.

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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