Is Chevron Corporation (CVX) a Good Stock to Buy?

Like its peers, Total is solidly profitable. The company reported an 8% increase in both sales and full-year adjusted net income per share (in euros). The company is a great cash generator, reporting a 15% year over year increase in cash from operations during 2012. In addition, the company is conservatively capitalized, carrying a net-debt-to-equity ratio of only 21.4%.

The Foolish takeaway

Finding successful companies with high dividend yields in today’s market is a tough job. With interest rates at historic lows and the stock market breaching uncharted territory, it’s getting harder and harder to find modestly valued dividend stocks that still have compelling yields.

Chevron has certainly rallied strongly alongside the broader market. However, unlike less successful companies, Chevron’s strong price performance is well-justified. And fortunately for investors who missed the company’s rally, the company still holds a reasonable valuation and provides a 3% dividend yield.

Moreover, the shareholder rewards are likely to continue for many years to come. Chevron operates in an industry that is essential to our society, and has a demonstrated track record of providing strong profit growth and dividend increases. While new investors are not getting Chevron at the bargain price they could have a few years ago, they’ll still get a massively profitable business and should do well for the foreseeable future.

The article Is Chevron a Good Stock to Buy? originally appeared on Fool.com.

Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends Chevron and Total SA. (ADR). Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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