Should You Buy Chevron on the Dip?

The stock market has been in disarray for the past few weeks and just about everything is falling in price.
Even oil and gas stocks, which have been dominant this year, have been under pressure of late. Chevron
Corporation (NYSE:CVX) is a prime example of that. Year to date, the stock is up over 25%, and that's
with shares of Chevron falling more than 15% in just the past week.

Oil prices have been declining of late. West Texas Intermediate, a key benchmark, was at more than
$122/barrel earlier this month and on Friday it was below $110. That's still well up from the roughly
$76/barrel it was at to start the year. With the Russian invasion of Ukraine not looking to end anytime
soon and the peak travel season only about to begin, it doesn't look likely that there will be a significant
drop in oil prices just yet.

Strong commodity prices could help top oil and gas stocks, including Chevron, continue to rise in value
this year. At a forward price-to-earnings multiple of less than nine, Chevron still looks relatively cheap.
And in an inflationary environment, it could be an excellent investment to help offset some market-
related risk for investors looking to diversify their holdings.

Add to that the stock's 3.8% dividend yield, and Chevron could make for a promising investment to hang
on to right now. Its payout ratio sits at around 50% and if nothing else, it could be a solid dividend stock
to buy.