#3 - Chevron (NYSE:CVX)
Oil stocks are notoriously cyclical stocks. Still, many big oil stocks like Chevron Corporation (NYSE: CVX) are among the best defensive stocks that you can have in your portfolio. One reason is that oil companies continue to get increasingly efficient. That means they can deliver profitable earnings even if the price of crude oil falls below $60 a barrel. And when it starts to cross $80 a barrel, the earnings come in like a gusher.
There are many oil stocks to choose from, but few have the balance sheet that Chevron brings to bear. The company can invest $22 billion annually from its internal cash flow, even with depressed oil prices.
The company also continues to invest in the business. Its acquisition of Hess Corporation (NYSE: HES) is likely to be finalized in 2025, and the company will increase its capital investments. All of this can be done without any concerns about its dividend, which the company has increased for 37 consecutive years as of January 2025.
About Chevron
Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification of liquefied natural gas; transportation of crude oil through pipelines; transportation, storage, and marketing of natural gas; and carbon capture and storage, as well as a gas-to-liquids plant.
Read More - Current Price
- $158.17
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 13 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $174.87 (10.6% Upside)
