1 Stock I'd Buy Before Chevron in 2026

Chevron (NYSE: CVX), the major energy company based in Houston, Texas, has performed fairly well this year. The company's stock is up approximately 3% year to date, and its quarterly dividend of $1.71 has made it a steady value company for the past several years. However, if you're an investor looking for a bit more in the way of growth opportunities in the oil field, then ConocoPhillips (NYSE: COP) is a more attractive buy as we enter into the new year.

Chevron is a much bigger company with a market capitalization nearly triple that of ConocoPhillips. Chevron can provide a lot of stability and has increased its dividend for 38 consecutive years.

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ConocoPhillips primed for more growth

So, why would an investor choose ConocoPhillips over Chevron? Shares of COP are down 4.25% as of Dec. 17. When thinking long-term about the trajectory of the two companies over the next decade, ConocoPhillips has similar income opportunities with its dividend, but more to offer investors in the way of growth.

ConocoPhillips' growth plans include acquisitions, such as its addition of Marathon Oil at the end of 2024, as well as its Willow Project in Alaska, which is expected to produce 180,000 barrels per day starting in early 2029. ConocoPhillips is expanding its Liquefied Natural Gas (LNG) portfolio via equity stakes and acquisitions, too.

ConocoPhillips is committed to reducing costs by up to $1 billion annually. The company has mostly achieved this through workforce reductions. In September of 2025, ConocoPhillips announced layoffs of up to 25% of its global employees. Lastly, ConocoPhillips is disposing of assets, with a goal of $5 billion in dispositions by the end of 2026. This will give the company a tremendous amount of cash on the balance sheet.

ConocoPhillips is executing on its vision and will continue to grow over the next decade. On the income side, COP's dividend isn't quite as robust as Chevron's and is a bit more volatile. Still, the company raised its dividend to $0.84 per share in the most recent quarter. For investors wanting both income and growth, ConocoPhillips more than checks the necessary boxes.

Shares are trading at a fair price

Right now, ConocoPhillips is priced more fairly than Chevron. ConocoPhillips is trading with a price-to-earnings ratio hovering around 13. Chevron is slightly more expensive, with a ratio above 20.

The consensus among analysts is that ConocoPhillips is a buy. For investors on the hunt for dividend-producing stocks with significant growth upside, shares of COP are the way to go.

Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends ConocoPhillips. The Motley Fool has a disclosure policy.