Chevron (CVX): Strong Dividend & Recent Rally, But Valuation and Payout Ratio Are Screaming Red Flags
Chevron is trading at $196.97 after a 24.6% YTD run, boosted by oil prices spiking above $75–$100 due to Iran-US tensions. The company offers a 3.6% dividend yield with 39 years of increases, but its payout ratio has ballooned to 104%—meaning it's paying out more than it earns—and the current valuation looks stretched at 28.7x trailing earnings.
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