Balancing Dividends and Fundamentals: The Case of NYSE:CVX.

CHEVRON CORP (NYSE:CVX) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:CVX scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Understanding NYSE:CVX's Dividend Score

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:CVX was assigned a score of 7 for dividend:

• With a Yearly Dividend Yield of 4.33%, CVX is a good candidate for dividend investing.
• CVX's Dividend Yield is a higher than the industry average which is at 6.39.
• Compared to an average S&P500 Dividend Yield of 2.22, CVX pays a better dividend.
• The dividend of CVX is nicely growing with an annual growth rate of 6.07%!
• CVX has been paying a dividend for at least 10 years, so it has a reliable track record.
• CVX has not decreased their dividend for at least 10 years, which is a reliable track record.

A Closer Look at Health for NYSE:CVX

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CVX has received a 7 out of 10:

• CVX has an Altman-Z score of 3.78. This indicates that CVX is financially healthy and has little risk of bankruptcy at the moment.
• CVX has a better Altman-Z score (3.78) than 83.01% of its industry peers.
• CVX has a debt to FCF ratio of 1.28. This is a very positive value and a sign of high solvency as it would only need 1.28 years to pay back of all of its debts.
• The Debt to FCF ratio of CVX (1.28) is better than 83.01% of its industry peers.
• CVX has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
• CVX's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. CVX outperforms 74.76% of its industry peers.

Assessing Profitability for NYSE:CVX

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CVX has earned a 5 out of 10:

• Looking at the Return On Assets, with a value of 7.18%, CVX is in the better half of the industry, outperforming 62.14% of the companies in the same industry.
• CVX's Profit Margin has improved in the last couple of years.
• CVX's Operating Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Check the latest full fundamental report of CVX for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.