7 Cheap Quarterly Dividend Stocks to Invest in

1. Chevron Corporation (NYSE:CVX)

Forward P/E Ratio: 12.59

Chevron Corporation (NYSE:CVX) is an American multinational energy company that manufactures and sells a range of high-quality refined products. The company aims to remain profitable even if oil prices moderate, ensuring it can support capital projects and increase dividend payouts. To accomplish this, the company is targeting an additional $2 billion to $3 billion in structural cost reductions by 2026 while prioritizing a low-cost, high-margin production strategy. In the past 12 months, the stock has surged by nearly 5%.

Chevron Corporation (NYSE:CVX) has drawn investor interest with its strong cash position. The company’s CEO recently detailed plans to increase free cash flow by $6 billion to $8 billion next year, alongside significant cost reductions. These gains are expected to come from expanded oil production efforts in Kazakhstan, US shale regions, and the offshore Gulf of Mexico. In the latest quarter, the company reported an operating cash flow of $9.7 billion, up from $6.3 billion in the same period last year. In addition, it returned $7.7 billion to shareholders through dividends and share repurchases.

Chevron Corporation (NYSE:CVX) remains a preferred pick for income-focused investors, having increased its dividend payouts for 37 consecutive years, even through industry downturns. This track record makes it a dependable choice for those new to the sector and looking for stable investments. Unlike many exploration and production (E&P) firms, which tend to carry greater risk, Chevron provides a more reliable option with consistent returns. It currently offers a per-share dividend of $1.63 every quarter and has a dividend yield of 4.16%, as of January 30.

At the end of Q3 2023, 63 hedge funds tracked by Insider Monkey owned stakes in Chevron Corporation (NYSE:CVX), compared with 64 in the previous quarter. These stakes have a consolidated value of over $21 billion.

Overall Chevron Corporation (NYSE:CVX) ranks first on our list of the best cheap quarterly dividend stocks to invest in. While we acknowledge the potential for CVX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CVX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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