Chevron (CVX) is a bit of a cyclical play thanks to its exposure to energy demand, but when it comes to entrenched companies you’ll find it hard to identify another company with a moat as wide as CVX’s. With a $220 billion market cap, $43 billion in cash in the bank and almost $6 billion in annual operating cash flow, this is a stock that is as stable as they come.
Worldwide production of about 2.6 million barrels of oil and gas per day will do that for you.
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 170% in the last decade to give shares a current yield of 3.2%.
While CVX may not be as big as Exxon (XOM), it does seem to be more fairly valued based on forward earnings — and also appears more stable, logging a 8% gain YTD in 2013 vs. a small decline for XOM stock.