Though second to Exxon Mobil (XOM) in size, Chevron (CVX) is hardly a small fish in the energy space with some $39 billion in operating cash flow annually, a $235 billion market cap and a history of dividends that spans over 100 years.
This mega-cap energy company has underperformed in 2013 in large part because of the slowdown in China, which has created a rather tough road for commodity stocks across the energy and materials space. But don’t think for a second this means that Chevron is in trouble — or that its dividend is in question, since dividend payouts represent less than a third of total earnings per share.
You could do worse over the long haul than this stable energy company, since it will remain dominant in the oil space and will keep paying a plump dividend for decades to come. And eventually when the global economy turns around, CVX will see a nice run-up as a result of increased oil demand