Dow component Chevron Corporation (CVX) rose nearly 23% in Tuesday's session after announcing that there were no plans to cut the whopping 9.52% dividend, despite a historic crash in the crude oil market. The stock had dropped 55% in two and a half months to its lowest low since 2005 before the news, caught in a sector bear market that is likely to trigger dozens of bankruptcies at less liquid rivals.

Chevron isn't a bad choice in this regard. It boasts a market cap of $125.1 billion and is engaged in an aggressive cost-cutting plan, seeking to reduce capital spending by $4 billion, or 20% of the current budget. Not surprisingly, the biggest cuts will come from upstream business, mostly in the Permian Basin. Chevron has also suspended share buybacks, letting cash flow back into the bottom line rather than stacks of paper that have taken on far less value in recent years.

The Bottom Line

While it's too early to buy most energy stocks, these oil sector giants have reached deep support levels that could yield substantial upside in coming months.

source: Investopedia