What Is One of the Best Energy Stocks to Hold for the Next 10 Years?

Energy companies can often float under the radar until something happens that brings them to light. In this case, it’s the rising gas prices that many consumers are starting to feel in their wallets.

Some people use short-term price jumps as a reason to hurry and buy shares of a particular energy stock, but a better approach is to focus on a stock you can comfortably hold for the next decade or longer. Chevron (CVX +1.43%) fits that description.

Image source: The Motley Fool.

The reason Chevron is one of the best energy companies to own over the next decade is that it operates in all three major phases of the oil and gas ecosystem: upstream, midstream, and downstream. Upstream involves finding and extracting oil from the ground; midstream involves transporting and storing oil; and downstream involves refining it into gasoline and selling it.

Having a hand in all three phases helps keep Chevon’s business consistent and relatively stable when one segment faces a specific issue. For example, low oil prices could slow down Chevron’s upstream business, while higher transportation costs could make its midstream business more expensive. When one is down, the other two segments can pick up some of the slack.

Expand

NYSE: CVX

Chevron

Today’s Change

(1.43%) $2.87

Current Price

$204.31

Key Data Points

Market Cap

$402B

Day’s Range

$201.21 - $205.06

52wk Range

$132.04 - $205.06

Volume

311K

Avg Vol

12M

Gross Margin

14.66%

Dividend Yield

3.43%

Although Chevron’s stock is up over 26% year to date (as of March 16), I wouldn’t invest expecting this performance year in and year out. However, it can be a good income source, with a dividend yield that’s routinely nearly three times the S&P 500 average.