August 7, 2012
The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.
Over the next couple of weeks, John and David will be revisiting some calls they made on individual stocks of the Dow. Today, they're checking out Chevron. This company is up just 2% in 2012 compared with a roughly 5% gain for the Dow average as a whole.
John and David gave Chevron an outperform call earlier in 2012, thinking it would beat the market over the next five years. So far, that's been the case. The company has been performing relatively well, even as oil and gas prices have fluctuated. Like competitor ExxonMobil, Chevron is well-managed and has a nice group of global energy properties, despite competition from smaller firms like SandRidge Energy. David also likes its venture arm, which invests in new energy technologies, such as Solazyme's biofuel efforts. All in all, David and John are sticking with their outperform call on Chevron. They think the company is built to last, and its 3.3% dividend yield is attractive.
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