Chevron Corporation Is A Good, Long-Term Buy

What’s a low-cost, high-yield stock with inflation-beating dividend growth and a safe payout ratio?

Chevron Corporation ($CVX).

This oil giant pays a 4%+ starting dividend and trades at a price to earnings ratio well below the S&P 500. Additionally, Chevron has delivered a 5-year compound annual dividend growth rate of 6.33% — outpacing long-term inflation.

While I don’t view this company has a high-growth stock where a tiny investment could bloom to a million-dollar holding, I did run some calculations to determine Chevron’s long-term income potential.

And the results may surprise you…

Chevron Corporation Fundamentals

Some companies are so big and so ubiquitous that I feel stupid when I try to summarize them.

Chevron is one of these businesses.

To put Chevron’s size into perspective, everybody talks about Disney. It’s a household name, and there are endless Internet arguments about how Disney is handling franchises like Marvel and Star Wars.

The Walt Disney Company has a market cap of $185.51 billion.

Chevron Corporation has a market cap of $290.73 billion.