Dividend Yield: 3.2%
Big oil may not seem like the best bet if you want to avoid volatility, but geopolitical unrest and a “risk premium” for crude makes a pretty good floor in major oil stocks like Chevron (CVX).
And while it’s second to Exxon Mobil (XOM) in size, Chevron is no slouch when it comes to reach. The oil megacap has a market capitalization of $245 billion, $230 billion in annual revenue and worldwide production of about 2.6 million barrels of oil and gas per day.
That reliable production and scale provides for reliable dividends, too. Chevron has paid out some form of dividend since 1912 and increases its distributions like clockwork. Adjusted for a stock split, CVX dividends are up 185% in the last decade to give shares a current yield of 3.2%.
The stock is up about 17% year-to-date, but the threat of trouble in the Middle East and Northern Africa continues to keep crude oil expensive — and if inflation takes hold and pushes gasoline and oil prices even higher, CVX stock is going to see a pretty good run.
And if not, and the economy is all hunky dory? Well, stronger energy demand because of a cyclical recovery will boost Chevron revenue, too.