Evaluating Chevron (CVX) Stock's Actual Performance

Core Viewpoint - Chevron has shown a mixed performance over the past five years, with significant returns when accounting for dividends, despite a decline in stock price in the short term [2][3][8]. Group 1: Performance Analysis - Over the past five years, Chevron's stock has increased by 75.7%, which is lower than the S&P 500's 87.9% [2]. - Including dividends, Chevron's total return over five years is 115.5%, outperforming the S&P 500 [3]. Group 2: Factors Influencing Returns - The primary factor affecting Chevron's performance is the price of crude oil, which has decreased by 12.5% over the past year and nearly 25% over the last three years, but has risen almost 38% over the past five years [5]. - Chevron has invested in expanding production in low-cost areas and made acquisitions, such as PDC Energy and Hess, to enhance its resource base [6]. - The company has the lowest breakeven level in the industry at $30 per barrel, positioning it for significant free cash flow growth over the next five years [7]. Group 3: Dividend Strategy - Chevron offers a high-yielding dividend currently at 4.5%, which is three times that of the S&P 500 [3]. - The company has consistently increased its dividend for 38 consecutive years, highlighting its commitment to returning value to shareholders [3][8].