Current Dividend Yield: 3.2%
Performance So Far in 2012: +8% (vs. +9% for the Dow Jones Industrial Average)
This major oil stock is smaller than Exxon Mobil (NYSE:XOM), but that’s like saying King Kong is smaller than Godzilla. CVX has a market cap of about $225 billion, to make it one of the 10 largest corporations that trade on American stock exchanges. Chevron also generates more than $200 billion a year in revenue, placing it on the top 10 list of U.S.-listed corporations on that front, too.
Oil stocks like Chevron can be cyclical, but to me that makes CVX a good investment now. The recovery hasn’t kicked in, but baseline demand is strong — which means you won’t be faced with much of a downside risk since oil consumption isn’t going to disappear anytime soon. Geopolitical unrest in the Middle East also ensures that crude won’t be dipping significantly in the near term, even if energy needs soften slightly.
So why not collect a hefty dividend of almost 3.2% while you wait for a cyclical recovery to lift Big Oil stocks like Chevron? Seems like a no-brainer for investors looking for a low-risk way to enter the market right now and earn dividends while they wait.