Chevron Stock Through A Boom And Bust Cycle

There are certain cyclical companies—ExxonMobil, Chevron, Emerson Electric immediately come to mind—that have storied records of growing their dividends year after year that make them interesting case studies independent of most other large-cap industrials and energy companies with cyclical business models. The rising dividend is such an important distinguishing characteristic for those few cyclical companies of Chevron’s caliber because it turns uncertainty into your friend—you have a rising dividend that puts more money into even more shares as they fall 15%, 25%, 50%, or whatever.

When I study Chevron’s history, I am reminded of the Tom Lewis quote that the stock market resembles a man walking a yo-yo up the stairs where people get too distracted by the yo-yo’s movements and ignore the far more important matter of the man walking up the stairs. The spirit of that analogy certainly applies to Chevron, which hit a high price of $135.10 … Read the rest of this article!