11 Best Energy Stocks to Buy for Dividends in 2026

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2. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 89

Dividend Yield as of Jan. 19: 4.11%

Chevron Corporation (NYSE:CVX) manufactures and sells a range of high-quality refined products, including gasoline, diesel, marine and aviation fuels, premium base oil, finished lubricants, and fuel oil additives.

On January 20, JPMorgan resumed coverage of Chevron Corporation (NYSE:CVX) with an ‘Overweight’ rating and a price target of $176, indicating an upside of over 6% from the current levels. Following the completion of the long-awaited Hess merger, the analyst thinks that Chevron is in an attractive phase of its investment cycle. Moreover, the oil major has been working on a structural cost savings program, putting it on track to deliver $3 billion-$4 billion in annual run-rate savings by 2026.

Moreover, Chevron Corporation (NYSE:CVX) is looking to capitalize on the AI boom and is in exclusive talks to provide natural gas-fired power to a data center, leveraging its large domestic production base of over 3 Bcfd. While a deal hasn’t been secured yet, the company expects to reach a final investment decision in the first half of this year and deliver first power by 2027-28. JPMorgan’s Arun Jayaram estimated that the data center project could generate mid-teens unlevered returns on capital.

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