Chevron is near a 52-week low but remains a top buy for passive income.

From Yahoo Finance: 2025-05-17 07:45:00

Chevron boasts an industry-leading breakeven point on its upstream portfolio, supporting a massive capital return program without risking financial health. With 38 years of dividend increases and a high yield, Chevron is an attractive income play. Despite recent stock price declines, Chevron remains efficient and plans to increase production and free cash flow by 2026.

Brent crude oil prices at multi-year lows have impacted Chevron’s margins, leading to lower revenue and earnings growth. However, the company is working on growth initiatives that are expected to generate $9 billion in free cash flow in 2026. Chevron’s low upstream breakeven point and efficient production portfolio set it apart from competitors.

Chevron expects a 50% increase in Gulf Coast production by 2026, driven by projects like the deepwater Anchor project. The company’s buyback program has seen record amounts of stock repurchases in recent years. Despite lower oil prices, Chevron continues to reward shareholders with dividends and buybacks, maintaining a strong balance sheet.

Chevron’s consistent dividend raises and high margins, even at current oil prices, make it a reliable passive income option. The company’s focus on reducing its breakeven point and investing in high FCF projects suggest more buybacks and dividend raises ahead. Chevron’s share repurchases benefit shareholders by increasing earnings per share, making it an appealing investment for passive income seekers.



Read more at Yahoo Finance: Near a 52-Week Low, Here’s Why This 4.8%-Yielding Dividend Stock Is a Top Buy for Passive Income