Near a 52-Week Low, Here's Why This 4.8%-Yielding Dividend Stock Is a Top Buy for Passive Income

Core Viewpoint - Chevron is positioned as an excellent dividend stock for passive income investors, despite a recent decline in stock price and low oil prices [1][3][13] Financial Performance - Chevron's stock has fallen approximately 16% from its 52-week high, which occurred less than two months ago [1] - Brent crude oil prices are at multi-year lows, impacting Chevron's margins and leading to lower revenue and earnings growth [3] - The company has become more efficient, with expected incremental free cash flow (FCF) of $9 billion by 2026 at a Brent price of$60 per barrel [5] Operational Efficiency - Chevron has the lowest upstream breakeven in its peer group, around the low $30-per-barrel Brent range, outperforming competitors like ExxonMobil and Shell [6] - The company anticipates a 50$11.26 billion in 2022, $14.94 billion in 2023, and$15.23 billion planned for 2024 [8] - The company plans to spend $2.5 billion to$3 billion on buybacks in the second quarter of 2024, while maintaining a strong cash return to shareholders [9] - Chevron's quarterly dividend expenditure is around $3 billion, with a 38-year history of increasing dividends, resulting in a yield of 4.8% [10][11] Financial Health - The company's debt ratio stands at 14.4%, which is below its target range of 20% to 25%, indicating a strong balance sheet [12] Investment Outlook - Chevron is viewed as a reliable dividend stock with a strong track record, capable of generating high FCF and supporting future buybacks and dividend increases [13][14]