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Opinions David Dietze
Chevron TexacoCVXTOP PICKMar 21, 2017
David DietzeStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Took profits to rotate into sectors with higher beta. Oil stocks have come off with price of oil. Chart's been sideways, earnings disappointment. Longer term, likes the energy space with demand moving higher and supply cuts. 7.5% free cashflow yield, 4.2% dividend yield. He'd consider adding back into the portfolio.
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Premium contentOur PAST TOP PICK with CVX has triggered its stop at $150. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 6%, when combined with our previous recommendations.
Is skeptical that them buying Hess will double their free cash flow by 2027, but not without risk. Earnings were okay, 8.5% better than last quarter but lower than a year ago. Had owned this 11 years, but would buy on a pullback. The dividend is secure and growing.
Kevin Simpson
Premium contentWe reiterate CVX, one of the world's largest integrated energy companies, as a TOP PICK. With WTI prices high enough to generate impressive free cash flow, the company intends to focus on its primary asset in the Permian basin, where economics are well known. This allows the company to maintain a ROE over 20% and to pay a good dividend backed by a payout ratio under one-third of cash flow. We continue to recommend a tight stop at $150, looking to achieve $188 -- upside potential of 18%. Yield 3.6%
(Analysts’ price target is $188.13)Energy is out of favour. Very strong financial position, 11% debt to total capital. Capital investments of years ago are paying off. Great free cashflow. Trades at 7x enterprise value to EBITDA, relatively cheap. Wonderful promise on growth, and shareholder-friendly paybacks. Yield is 3.77%.
(Analysts’ price target is $185.18)
Gordon ReidPremium contentWe reiterate CVX, one of the world's largest fully integrated oil and gas companies as a TOP PICK. The company continues to generate enormous free cash flow, allowing the company to aggressively retire debt and buy back shares. It trades under 10x earnings and under 2x book value. It pays a good dividend backed by a payout ratio under 1/3 of cash flow. We continue to recommend a stop at $150, looking to achieve $189 -- upside potential of 19%. Yield 3.6%
Premium contentAs of end 2022, CVX was Warren Buffet’s third largest holding - $30 billion. The company is generating incredible cash flow as it benefits from its integrated portfolio from production to retail distribution. It trades at 10x earnings and under 2x book value and supports a 23% ROE. Cash reserves are growing while debt is retired and shares bought back. It pays a good dividend, backed by payout ratio under 35% of cash flow. We recommend placing a stop loss at $150, looking to achieve $193 — upside potential over 19%. Yield 3.58%
(Analysts’ price target is $192.96)Pristine balance sheet, only 12% debt to total capital. Investments are paying off. Good entry point, as oil's traded off. Yield is 3.61%.
(Analysts’ price target is $191.80)Gordon Reid
He is looking for market-leading companies that are in sectors out of favour, and either have very strong dividends or some sort of catalyst that will unlock value. This one meets all that criteria. Oil has dropped over $100 a barrel, down to about $26, and then moved up now to just below $50. As a result, companies are still shutting in production as opposed to expanding, until supply/demand come back into sync. This is a great way to play that. No matter what happens, this company is dedicated to holding up their 4% dividend yield. Also, they have already made a lot of investments such as Indonesia, so CapX is going to be further reduced, and will be able to grow their free cash flow going forward. (Analysts’ price target is $126.50.)