Better Dividend Buy: Chevron or Enterprise Products Partners?
Oil and natural gas prices have recovered strongly from their most recent nadir in 2020. Now is the perfect time to consider the risk that a new drawdown could be in the cards in this highly cyclical sector. With that in mind, global energy giant Chevron (NYSE: CVX) and North American midstream giant Enterprise Products Partners (NYSE: EPD) are two "safety first" names that you'll want to look at today. Here's a side-by-side comparison to get your research started.
The energy sector is generally broken down into three broad segments -- upstream (drilling for oil and natural gas), midstream (pipelines and other assets that move these products), and downstream (refining and chemicals). There are different dynamics to each segment. Chevron is an integrated energy major because of its size and the fact that its operations span across all three of the industry's segments. This diversification is beneficial because some areas (notably the downstream) perform well when oil prices are falling, helping to soften the blow of energy downturns. Oil and natural gas are still the driving force at Chevron, but it tends to hold up better through the typical energy cycle than a company with only an upstream focus.
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Source Fool.com
