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Chevron vs. ExxonMobil: Only one deserves a spot in your portfolio today

Chevron vs. ExxonMobil: Only One Deserves a Spot in Your Portfolio Today.
Chevron vs. ExxonMobil: Only One Deserves a Spot in Your Portfolio Today.

Both companies offer attractive yields, but one has lower risk and higher free cash flow.

Key Points

  • ExxonMobil plans to repurchase $20 billion in shares this year.

  • Its stock has risen more than 150% over the past five years.

  • That far outstrips Chevron's 90% gain over the same period.

In a battle between two of the biggest oil giants, there's a lot to like with both Chevron (NYSE: CVX) and ExxonMobil (NYSE: XOM) stocks. Investors trying to decide between the two need to dig a bit deeper to find which stock truly belongs in their portfolio. Let's compare and contrast both.

Both ExxonMobil and Chevron pay dividends. ExxonMobil's quarterly dividend of $1.03 per share yields just under 3% at current prices. Chevron, however, pays $1.78 per share, yielding nearly 4%.

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Regarding stock appreciation over the past five years, ExxonMobil has risen more than 150%, compared to Chevron's nearly 90% gain. ExxonMobil is a substantially larger company than Chevron by market capitalization -- exceeding $600 billion -- whereas Chevron's is nearly half that at $366 billion.

Chevron's and ExxonMobil's logos on blue and red backdrops.
Chevron's and ExxonMobil's logos on blue and red backdrops.

ExxonMobil becomes a more appealing stock due to current risks. Both are well run, but Chevron faces more legal issues and geopolitical risks, particularly due to its exposure in Venezuela.

Chevron is also in a weaker cash position than ExxonMobil. Chevron's free cash flow was negative in the first quarter of 2026. The company acquired Hess in 2025 and is now in a multi-year restructuring. ExxonMobil, on the other hand, plans to repurchase $20 billion in shares in 2026 alone.

From a distance, these two oil behemoths seem quite similar, but upon closer inspection of their production growth, cash-generation ability, and current execution risks, ExxonMobil has a slight edge. Right now, it's a stronger and lower-risk investment with a solid yield. If you had to choose today, ExxonMobil deserves the spot in your portfolio.

Should you buy stock in ExxonMobil right now?

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Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.

Read full story on The Motley Fool

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