How to buy Chevron Stock

Chevron Corporation (Stock symbol CVX) is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries.

It’s engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining, marketing and transport; chemicals manufacturing and sales; as well as power generation.

What is Chevron Stock worth Today?

Chevron is one of the world’s six major oil companies. For the past five years, Chevron has been continuously ranked as one of America’s 5 largest corporations by Fortune 500 and they’re currently ranked 3rd in the list after ExxonMobil and Walmart.

Chevron’s share price is currently in the $100 range which gives the company a market capital of around $217 billion. This makes them the second largest oil company in the world in terms of market cap after ExxonMobile.

Chevron Stock History Chart

Chevron Stock Price History

During the recession of 2008-09 Chevron stock dropped below $60 per share, this wasn’t helped by a weakening of the oil price during this period. The price has since recovered to the point where Chevron stock is currently trading well above pre-recession levels at around $100.

A recent oil spill in Brazil towards the end of 2011 caused the share price to fall slightly, but this was cleaned up quite quickly and the impact was negligible. It does however highlight the risk that you take when investing in a major oil company.

The resilience of the share price is largely due to a rise in the price of crude oil. Chevron is currently more profitable than at any time in its history. If you were to have invested $10,000 in Chevron stock at the time of the last stock split in 2004, your investment would have doubled, even after taking into account the largest recession in history.

Chevron Stock Split History

Chevron has split its stock 2:1 four times in its history. The first split took place on Dec 11th, 1973 with the stock trading at 59.00 on the previous days trading and closed at 29.25 the following day, resulting in a small loss of -0.85%.

The second split took place on Mar 11th, 1981 with the stock trading at 83.00 on the previous days trading and closed at 40.88 the following day, resulting in a loss of -1.49%.

The third split took place on Jun 13th, 1994 with the stock trading at 90.75 on the previous days trading and closed at 44.88 the following day, resulting in a loss of -1.09%.

The fourth and final split took place on Sep 13th, 2004 with the stock trading at 100.05 on the preceding days trading and closed at 50.94 the day after, resulting in a gain of 1.83%.

When Will Chevron Stock Split Again?

With the Chevron price currently trading at around 100.00 you have to think that a split can’t be far away. The company is performing solidly and out performing the market, so I would expect a split to take place when the price reaches around 150.00.

The way the stock is performing that could be within the next two to three years. Of course this is only subjective, but judging by the price at which previous splits have taken place it’s more than possible.

Does Chevron Stock Pay a Dividend?

Chevron pays its dividend quarterly, for the past five years this has amounted to an average 4.4% annual yield. This is not as high as the other big three oil companies but Chevron has achieved more than 10% growth over the same period of time, which is higher than their nearest rivals.

Oil stock and utilities in general are usually coveted for their dividend potential, but Chevron seems to offer the best of both worlds, a high dividend, plus strong growth. When coupled together it makes for a compelling investment.

Should You Invest in Chevron Stock?

Chevron is still undervalued compared to its contemporaries, with the exception of BP for obvious reasons. There is no sign of oil consumption falling; in fact countries like India and China are likely to require more oil as they continue to grow. This coupled with the already high price for oil means the long-term outlook for Chevron remains good.

All of this makes Chevron a good buy right now, they’re good for strong growth throughout the next five years and their bottom line will be helped by a strong oil price. The only possible dangers are associated with a possible oil disaster on a scale of Deepwater Horizon. But Chevrons safety record is actually quite good in this respect, that doesn’t mean you should be complacent however, a major disaster can and will happen at some point in the future. If you want to invest in Chevron, make sure you get the best deal by taking a look at our list of top 4 online brokers.