What’s the Fair Price for Chevron

Chevron Small

Chevron Corp (CVX) is an energy giant that barely needs an introduction. A global energy powerhouse, Chevron was founded as Standard Oil of California in 1879 and became Chevron Corporation in 1984. Chevron is a component of the Dow Jones Industrial Average and since 2008; but was also part of the index from 1930 to 1999. The current downturn in the oil and energy prices have put a downward pressure on the stock prices, but Chevron has stood through such storms, wars, and recessions in the past. A dividend champion that has a record of raising dividends for 27 years, a 4.2% entry yield is lucrative – this article looks at the fair price of Chevron Corp.

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6 thoughts on “What’s the Fair Price for Chevron

    • Excellent choices, FFF. My cost basis is around $116. I would love to add more and average down on my position,…but lacking the funds in my portfolio right now. If the prices stay down for another month, I might add more.

      R2R

  1. Thanks for the analysis Roadmap. I’m torn between so many options here. In the energy sector alone I wonder if I should add to my existing stake in CVX and average down or do I open another position in XOM for diversity? It’s hard to know whats right sometimes. Thanks again

    • Captain,
      Cant go wrong with either CVX or XOM. Both are excellent companies and have seen much worse days than these. If you already have a full position in CVX, diversifying with a new position in XOM is not a bad idea. In my case, I can add a bit more to bring CVX to a full positon, so I am planning on adding to it if the prices stay down before new funds are added to my portfolio early in Jan.

      Best wishes
      R2R

    • Tony,
      Yes, in a way, the profitability is tied to the future price. But with huge mega caps like CVX, they can still remain fairly profitable by just cutting back on some capex — which is already starting to happen.

      Thanks for stopping by and the input
      R2R

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