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CVX and the Power of Consistency

Investing Wise Academy
Investing Wise Academy
18 hours ago
CVX and the Power of Consistency

CVX's Steady Oil Flow: $500 Monthly Bets Turn Short-Term Dips into Five-Year Strength

Five years ago, Chevron Corporation (CVX) shares were around $110 each. As of December 19, 2025, it's at $147.75—a reliable 34.15% gain from its integrated operations in exploration, production, refining, and chemicals, providing energy worldwide with a focus on efficiency and lower-carbon initiatives. Now, examine the six-month chart for the practical view: Starting August near $150, it pushed to October highs around $160 on solid earnings and oil stability, then eased through November-December to today's levels amid broader energy sector pressure or commodity fluctuations, netting a small 0.61% gain. That mid-period dip from $160 to $145 is typical short-term noise—perhaps from oil price swings or market sentiment—but the overall hold shows endurance, with the 52-week high of $168.96 already achieved and low at $132.04 not too distant.

The five-year compound annual growth rate (CAGR) is 6.05%, the average yearly step-up (total growth raised to 1/5 power, minus 1) that rewards consistency—about 6% growth per year.

Dollar-cost averaging (DCA) navigates this: Keep $500 coming monthly for five years, totaling $30,000. Those November dips to $145? Your opportunity to buy extra shares at a discount, lowering your average cost while peaks like October take smaller amounts. From $147.75, at a 0.49% monthly growth rate, it all builds quietly.

In 60 months, your stake could reach $34,212—a $4,212 profit and 14% return. Early investments compound steadily, but dip buys like recent ones position you better for rebounds.

The core takeaway: If you trust Chevron to deliver—optimizing production, advancing carbon capture tech, and growing through acquisitions like Hess—keep investing regularly, regardless of short-term drops.

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In fact, buy more when prices fall, turning those chart valleys into your advantage. Over five years, the odds favor operational improvements and sustained energy demand that lift the stock higher.

With a $297.50B market cap, P/E of 20.86 signaling fair value, and generous 4.63% dividend yield (quarterly $1.71), plus risks like volatile oil prices or regulatory changes on emissions, your DCA could create a dependable income and growth stream by 2030.

Flow steady?