Scott Levine and Lee Samaha, The Motley Fool

Sat, Jun 14, 2025, 4:13 AM5 min read

• If investors can see past the downturn in energy prices, Chevron stock is a great opportunity.

• Exponential AI demand growth is driving this company's end-market growth.

• 10 stocks we like better than Chevron ›

With the first half of 2025 nearly over, many investors are taking time to reevaluate their portfolios and take advantage of quality stocks that can be bought at a discount. It certainly requires some confidence to buy shares of a company when they're down, but it's opportunities like these that offer the potential for outsize returns.

Two Fool.com contributors, for example, recognize that oil supermajor Chevron (NYSE: CVX) and data center equipment provider Vertiv (NYSE: VRT) are two worthy considerations for investors to click the buy buttons on right now since they're stocks are trading down 23% and 26%, respectively, from recent all-time highs.

Scott Levine (Chevron): While the 23% decline in Chevron stock from its all-time high in January 2023 may be disconcerting, the truth is that the stock's fall isn't wholly unexpected. There's a strong correlation between the movements of energy prices and those of energy stocks, so when investors pair Chevron stock's plunge with the 22% dip in the price of oil benchmark West Texas Intermediate during the same time period, the performance in Chevron's stock becomes much more understandable.

Whether you're on the prowl for a reliable dividend stock or a steady energy stock or something in between, Chevron fits the bill. For 38 consecutive years, the company has hiked its dividend -- a notable achievement for any company but especially one whose business revolves around commodities along with their cyclical prices. Lest investors fear that the company is sacrificing its financial health to placate shareholders, a peek at Chevron's average payout ratio over the past five years should allay their concerns: It's a conservative 68.4%.

Unlike some companies that solely focus on exploration and production, or those with midstream businesses, or downstream operations, Chevron operates throughout the energy value chain. This provides it with the ability to benefit from greater efficiencies than companies with more concentrated operations, as well as mitigating the risks associated with a slowing in the business of any one link in the energy value chain.

For those looking to put some pep in their passive income streams, now seems like a great time to gas up on Chevron stock.