Chevron Has Surged Over 14% in 2026 and Still Yields 4.1%. Is It Still Worth Buying for Passive Income Now?
Key Points
Shares of the integrated oil giant are up more than 14% since the start of 2026.
The war in Iran hasn't had a significantly adverse effect on its upstream business.
Chevron has been a reliable dividend provider, hiking its payout for 39 straight years.
- 10 stocks we like better than Chevron ›
While the S&P 500 is up 9.3% since the start of 2026, Chevron (NYSE: CVX) stock has outpaced the index, soaring 14.5% as of this writing. Even with the strong performance, shares of the oil supermajor still offer investors a forward dividend yield of more than 4%.
But is it too late for those with Chevron stock on their watch lists to power their portfolios with its shares? Let's take a closer look at what's driven the stock's performance and if it's worth starting a position.
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The rise in energy prices is just one factor affecting Chevron stock
Given the strong correlation between energy prices and energy stocks, it's unsurprising that Chevron stock has climbed this year. As the war in Iran escalated and the Strait of Hormuz closed, energy prices rocketed higher. As of this writing, the price of a barrel of benchmark West Texas Intermediate crude oil has soared more than 48% since the start of 2026.
While some energy companies have suffered since the conflict began, Chevron has remained unscathed due to its limited operations in the region. Management, for example, stated on the company's first-quarter 2026 conference call that less than 5% of Chevron's production occurs in the region, and it reaffirmed its 2026 production forecast of 7% to 10% year-over-year growth.
Is it too late to power your portfolio with Chevron stock?
Despite the stock's recent rise, investors have a great opportunity to fortify their passive income streams with Chevron stock now. Having hiked its dividend for 39 consecutive years, Chevron has maintained a corporate culture of rewarding shareholders and maintaining the company's financial health. Over the past five years, the company has averaged a 64% payout ratio.
With Chevron continuing to integrate its acquisition of Hess -- including its assets in Guyana and the Bakken shale -- it is well positioned for growth in its upstream business as it also pursues organic growth in the Permian Basin and Gulf of Mexico.
Trading at 11.9 times forward earnings, Chevron stock is a solid pick from the oil patch right now.
Should you buy stock in Chevron right now?
Before you buy stock in Chevron, consider this:
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.
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