10 Best DRIP Stocks To Own Now

7. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 81

Chevron Corporation (NYSE:CVX) produces and markets a variety of premium refined products, including gasoline, diesel, marine and aviation fuels, high-quality base oils, finished lubricants, and fuel oil additives. The company operates five fully owned refineries in the US, which manufacture fuels, base oils, and other essential petroleum-based products. Since the start of 2025, the stock has surged by nearly 7%.

Last month, Chevron Corporation (NYSE:CVX) announced the completion of a $49 billion expansion at Kazakhstan’s Tengiz oil field, one of the world’s largest. This expansion is set to boost production to nearly one million barrels per day by mid-2025. At an oil price of $60 per barrel, the project is expected to generate $4 billion in free cash flow for Chevron this year and $5 billion in 2026.

Chevron Corporation (NYSE:CVX) maintained a strong financial position in FY24, generating $31.5 billion in operating cash flow and $15 billion in free cash flow. The company returned nearly $12 billion to shareholders through dividend payments and repurchased over $15 billion worth of its own shares, continuing its long-standing buyback strategy, which it has executed in 17 of the past 21 years. In January, Chevron raised its quarterly dividend by 4.9% to $1.71 per share, marking its 38th consecutive year of dividend growth, which makes it one of the best DRIP stocks to invest in. The stock has a dividend yield of 4.36%, as of February 23.

Chevron Corporation (NYSE:CVX) reported Q4 2024 earnings of $2.06 per share, missing analysts’ forecasts due to weak margins, which led to its refining segment posting its first loss since 2020. However, the company recorded $52.23 billion in revenue for the quarter, reflecting a 10.7% year-over-year increase and surpassing Wall Street estimates by over $3.8 billion. This growth was fueled by a 7% rise in global production and a 19% increase in US output, both reaching record highs in 2024. Moreover, Chevron generated nearly $8 billion from asset sales last year and ended the year with a solid financial position, maintaining a net debt ratio of 10%.