NEW YORK (TheStreet) -- On Wednesday, TheStreet's Jim Cramer and Stephanie Link, co-managers of the Action Alerts PLUS portfolio, stepped up their investment in the energy sector by purchasing shares of Chevron (CVX). 

The stock is off roughly 9% in 2014, after underperforming the broader market in 2013, returning 17%. But the duo can afford to wait. As they pointed out, "the company has increased its dividend for 26 years in a row and at its current price the stock yields an attractive 3.5%," with an increase expected in April. 

Concerns come from the most recent earnings report, which revealed a top and bottom line miss where sales fell more than 7% year-over-year. Additionally, the company's CAPEX spending was relatively high and production dropped 3.5%.

However, Link reasoned that the investments the company is making will begin to payoff in the second half of 2014.

So why invest now?

Along with the stock trading at a discount to its peers, with a price-to-earnings ratio of 10.4 versus 10.9, they view the upcoming earnings release on April 9 and analyst day on March 11 as positive catalysts in the short-term, along with a potential dividend hike as well. 

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DISCLOSURE: At the time of publication, Cramer's Action Alerts PLUS portfolio had a long position in CVX.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.