Shares of integrated energy giant Chevron (NYSE: CVX) are down 30% so far in 2020, pushing the dividend yield up to 6.1% -- near the highest levels in the last 30 years. Moribund oil prices are the main culprit, but this uniquely bad period presents more aggressive long-term investors with a buying opportunity. Here are three reasons why jumping into this out-of-favor sector via a purchase of Chevron's stock could be a good idea.
There are two material knocks against oil today. The first is that the price of the energy commodity is very low. In fact, at one point earlier in the year, oil prices turned negative, meaning that drillers were paying customers to take oil off their hands. There were technical reasons for that and it was a very brief event, but it was a troubling example of the fact that participants in the industry can't really control the price of what they sell. Oil prices remain relatively low, but well above their lowest levels. Supply and demand have a way of working out over time, which is why Chevron tends to focus on long-term factors and not near-term ups and downs.
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Source Fool.com