Chevron Corporation is an oil industry company based in San Ramon, California. Chevron has a $212.1 billion market capitalization as of today.
2021 has seen this company getting more than 30% returns, with increases in their yearly income by more than 15%. Their shares have experienced fluctuation this year, no surprise there since the oil business can be very volatile. However, overall, 2021 has seen a general rise in their price, since the end of 2020 was rather tough for the value of Chevron stock.
We will start with a brief analysis of the company’s current situation, which will help traders understand if this is the right moment to buy stock, as well as presenting some information on why it is a good idea to own Chevron stock, plus some drawbacks this may bring.
If you are considering buying Chevron stock, we are going to help you decide if this company’s shares are the right fit for your investment portfolio. Buying stock from different companies and industries is the best way to reduce risk and guarantee a more successful investment.
We have also created a guide to help beginners buy Chevron’s shares.
Is this a good time to buy Chevron stock?
Chevron Corporation is published in the NYSE and can be found under the name CVX.
The company has just paid dividends on June 10, and its shares are now experiencing a downswing movement, which may present interesting opportunities to investors looking to buy Chevron stock and have a longer-term strategy.
Companies that pay dividends are attractive investments for traders looking to make an extra income without much work. Several times a year a company may pay a percentage of the price of a share to investors. While not all companies do that, it should not be the single reason to buy Chevron’s stock (or those of any other company paying dividends).
Traders have to do their research to understand if this payment is sustainable and realistic without meaning struggle for the company. Dividends are also a good sign that a company is growing and therefore rewarding its investors.
And in the case of Chevron, there is a bit of a confusing state as to why the company is still paying dividends when last year they experienced serious losses. While the company may have its own reasons to pay dividends after such a bad financial year. Dividends are paid from what the company produces in income, and if dividends have to be paid by incurring debt or with company reserves, then it’s a worrying sign that in the long term may come back to bite them.
A deeper analysis of the company’s financials is necessary to determine if the company can actually continue paying these high dividends and where is the money they use to pay them coming from. Investors interested in a long-term strategy may find this interesting to make sure their investment is solid.
This may be a good time to think of a longer investment, prices of Chevron shares are going down and this presents an opportunity to buy them at a better price. What is going to happen in the future of Chevron stock, it still to be seen.
Step by step how to buy Chevron stock
Buying Chevron stock is very similar to buying stock from other companies. If you already have a broker, you just need to make sure they give you access to the NYSE, the New York Stock Exchange, and there you will find Chevron stocks under the name CVX.
If you don’t have a broker, it’s time to find one!
And choosing a broker should not be taken lightly. There are many out there, and they all offer different features, services, and costs. To make sure you choose a broker that fits your trading style and adapts to your investing needs, there are some aspects to consider.
There is almost no need to mention that any broker you even consider buying stocks must be regulated by the appropriate entities. This guarantees your information and more importantly, your money is safe from falling victim to scams and fraud.
Other aspects include costs, since commissions and fees can have an impact on your chances to make a profit, features in their online trading platform, as traders will want an intuitive and still thorough system that gives them access to the market, and research and educational tools that adapt to your expertise level.
Traders may want to check out reviews from users’ and experts’ opinions to make sure the rest of the services the brokers offer, like Social trading, or the reliability of their customer service, is up to their standards and financial needs.
Have you decided on a broker? Have you found the one that maximizes your chances of being a successful trader and offers access to Chevron stocks? Great! Now it’s time to open a brokerage account.
Opening an account with a broker is usually straightforward. Traders have to input their information and wait for a verification, which may take from an hour to a few days. In any case, once you have your account verified, you are ready to buy stocks!
In order to buy Chevron stocks or others, traders must deposit money in their brokerage account. To do this brokers offer a myriad of options including credit card, transfer, and even PayPal.
There is nothing left to do but buy the stocks you are looking for. Traders should remember to keep a diversified profile. They can follow the tips of experts that say that no more than 10% of their total investing capital should go to one company alone. This way, they can avoid losing all their capital if something goes wrong.
There are two basic ways to place an order and buy Chevron shares (or others do what matters). Traders can just place a normal order and buy the shares at the current market price, or they can opt for a limit order, which allows them to decide at what price they want to buy the shares, and when the stock reaches or drops to that price the order is executed.
Overview of the company
Chevron is an American Energy company famous for specializing in oil and gas. The company can be found published in NYSE under the name CVX. Chevron operates not only mining and extracting natural gas and crude oil, but also refining, marketing, and distributing fuels, with operations all around the world.
Chevron has also a wide presence in the US, providing fuel to gas stations under their own name, but also Texco and Caltex. They provide fuel for planes, and industrial operations, and have research projects in different corners of the world.
Final thoughts on buying Chevron stock
Chevron may be offering interesting opportunities for some traders, especially with prices going down at the moment, but it is not clear how they are going to develop in the future. The industry is rather volatile, so investors should keep that in mind.
At the same time, their policy of keeping paying dividends even when they have been through a period of loss creates more concerns than excitement. Where is the money to pay these dividends coming from? And how is the company going to make up for that extra pressure in their finances? These are factors that create a bit of worrying and pessimism among traders and may be a good reason to avoid their stocks for now.
Traders should always keep in mind the risk that investing in a company like this implies, not to say that there may be interesting opportunities for those willing to face the risk that comes with Chevron stocks.