Why I Bought More of This Top Warren Buffett Dividend Stock During the Recent Stock Market Sell-Off

Core Viewpoint - The stock market has experienced a significant sell-off, with the Nasdaq Composite entering bear market territory, raising concerns about potential recession due to tariffs [1] Company Overview - Chevron is highlighted as a high-quality dividend stock that investors can buy during the market downturn, with Warren Buffett's Berkshire Hathaway holding a substantial position in the company [2][3] Investment Position - Berkshire Hathaway owns approximately $250 billion in stocks, with Chevron being its fifth-largest holding at 6.5$16 billion [3] - Chevron's position is larger than that of Occidental Petroleum, which is Berkshire's seventh-largest holding [4] Financial Resilience - Chevron's shares fell nearly 20% during the recent market slump, increasing its dividend yield to nearly 5% [5] - The global benchmark price of Brent oil has decreased about 20% this year to around $60 per barrel, impacting oil demand due to tariff concerns [5] Business Model Strength - Chevron is better positioned to withstand lower oil prices compared to many other producers, thanks to its integrated business model and strong balance sheet [6] - The company can generate sufficient cash flow to cover its high-yielding dividend and capital expenditures at an average Brent oil price of$50 per barrel through 2027 [7] Shareholder Returns - Chevron has a history of increasing its dividend payments for 38 consecutive years and has the capacity to repurchase shares within its annual target range of $10 billion to$20 billion [7] - The company is expected to add $10 billion to its annual free cash flow by 2026 at a$70 oil price, and $9 billion at the current$60 price [8] Growth Potential - Chevron's acquisition of Hess for $53 billion in stock is anticipated to enhance its global resources portfolio and extend its production and cash flow growth outlook into the 2030s [9] Conclusion - Chevron is positioned to continue increasing its high-yielding dividend, making it an attractive investment for dividend income amid current market conditions [11]