Chevron Hits 52-Week High

Chevron [[CVX]] shares hit a new 52-week high today, closing at $88.37.

 

Since the beginning of 2010, CVX shares have gained nearly 15% and have outpaced the 9.6% gain in the Dow Jones index.

 

Earlier this year, falling oil prices and the BP [[BP]] fiasco had created some very attractive dividend yields in the energy sector. Chevron and ConocoPhilips [[COP]] both were yielding over 4% and even ExxonMobil [[XOM]] was yielding over 3%.

 

Despite the fact that oil prices are now nearing $90 per barrel, Chevron stock still offers a 3.2% dividend yield (above the 2.6% average of the Dow Jones components).

 

Chevron also has a strong dividend history in their favor. In April, the oil stock increased their quarterly dividend by 6%. The dividend increase wasn’t huge, but it did mark the 23rd consecutive year that Chevron has increased their dividend payment.

 

With Chevron shares currently trading at only 9x consensus 2011 earnings, it hardly looks expensive (even at a 52-week high). Many experts are forecasting triple-digit oil prices will return in 2011 which could take Chevron’s stock price to loftier levels next year

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