Best Dividend Stock to Buy Now and Hold Forever

Chevron (NYSE: CVX), one of the world's largest integrated energy companies, has raised its dividend annually for 39 consecutive years. If it maintains that streak for 50 years in a row, it will become one of the elite Dividend Kings . It pays a forward yield of 3.9%, and its projected 2026 EPS of $14.11 should easily cover its forward annual dividend rate of $7.12.

Chevron might seem like a cyclical oil stock , but it's consistently raised its dividend through four official U.S. recessions, ongoing conflicts in the Middle East, and other global economic shocks. Let's see how it maintained that streak, and why it's still a great income stock to hold forever.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

Rising oil prices generate tailwinds for upstream companies that explore and extract natural gas, but they often create headwinds for downstream companies that produce the refined products and other petrochemicals. As for the midstream companies that transport oil and gas through pipelines, they aren't as affected by volatile commodity prices because they simply charge tolls for using their infrastructure.

Chevron owns upstream, midstream, and downstream businesses, which makes it much more diversified, flexible, and resilient than companies that are too focused on a single market. It also has less exposure to the Middle East than many of its industry peers.

Chevron only needs Brent crude oil (currently at $83 per barrel) to stay above its corporate breakeven price of $50 per barrel through 2030 to support its capex and dividends. The breakeven price for its upstream business is even lower, at around $30 per barrel.

As long as oil stays above those key levels, Chevron can print plenty of cash to buy back more stock, raise its dividends, and expand its business in higher-growth regions like the Gulf of Mexico, Kazakhstan, Australia, and Guyana. It already has a presence in 180 countries, yet it aims to increase annual oil and gas production by 2%-3% through 2030.

At $188 per share, Chevron still looks like a bargain at 12 times this year's earnings. From 2025 to 2028, analysts expect its EPS to grow at a 25% CAGR as oil prices remain elevated, it ramps up production, and it implements cost-cutting measures to boost operating margins. So if you're looking for a simple, stress-free way to profit from the ongoing energy boom while earning some reliable income, Chevron checks all the right boxes.

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chevron wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $371,842 !* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,244,783 !*

Now, it's worth noting Stock Advisor's total average return is 900% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor , and join an investing community built by individual investors for individual investors.

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

Best Dividend Stock to Buy Now and Hold Forever was originally published by The Motley Fool

Sinergia Empresarial continuará el seguimiento de esta información sobre best Dividend Stock to Buy Now and Hold Forever y ampliará la cobertura conforme se confirmen nuevos elementos relevantes para el ecosistema empresarial.