Over the past year, Chevron's (CVX +1.05%) stock is up around 15%. However, it is also down roughly 15% from its 52-week high. And the majority of that price volatility has come just since the start of 2026. It is hard to ignore an energy industry giant like Chevron, which offers a well-above-market dividend yield of 4%. But investors also need to know what they are buying and why. Here's what you should do with Chevron today.
Chevron is built to survive the turmoil
Given the news flow from the Middle East, you likely know why Chevron's stock has been so volatile in 2026. But, in case you missed it, a geopolitical conflict in the Middle East shut down the Strait of Hormuz. That, effectively, reduced global energy supply by around 20%, which is a huge number. Energy prices rose dramatically and have since traded higher and lower in response to news from the conflict.
Image source: Getty Images.
There appears to be a breakthrough in the conflict, but significant uncertainty remains. Investors should expect continued commodity volatility in the energy sector. Which is exactly why Chevron, with its lofty dividend yield, could be a great pick for your income portfolio.
You should have exposure to the energy sector
Oil and natural gas are so important to the world that every investor should have some exposure to the sector. But the sector is known for being volatile, as the current Middle East conflict demonstrates. And yet Chevron has increased its dividend annually for decades just the same. It has managed to do that because it is built to survive the entire energy cycle.
NYSE: CVX
Key Data Points
For starters, it is a global integrated energy company. That means it operates across the entire energy value chain and has a diversified asset base. It can shift its business, in the short and long term, to optimize profitability. And the broad industry diversification helps to soften the impact of the energy sector's frequent swings. On top of that, it is one of the world's largest energy companies, enabling it to operate at a scale that smaller peers can't match.
Chevron is a safety-first investment
So, Chevron offers a high yield backed by a large, diversified business. But there's one more fact that makes it attractive right now: It has one of the strongest balance sheets in its peer group. If your eyes are glued to the ups and downs of the energy sector today, one of the best ways to play it over the long term is Chevron. That's true today, noting its highly attractive yield, and will likely be true in the future, as well. It is simply built to survive and reliably pay shareholders well, no matter what comes its way.
