5 Best LNG and LNG Shipping Stocks To Buy Now

3. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 73

Chevron Corporation (NYSE:CVX) is a prominent American multinational energy company, primarily concentrated in the oil and gas industry. Originating as the Standard Oil Company of California, it stands as the second-largest direct descendant of Standard Oil. The company is headquartered in San Ramon, California, and conducts operations across more than 180 countries globally.

On October 27, the energy company declared a quarterly dividend of $1.51 per share, maintaining the same dividend amount as the previous period. Notably, the company has consistently increased dividends for the past 36 consecutive years, demonstrating a commitment to rewarding shareholders.

By the end of this year’s second quarter, 72 out of the 910 hedge funds part of Insider Monkey’s database had held a stake in Chevron Corporation (NYSE:CVX). Out of these, the firm’s biggest investor is Warren Buffett’s Berkshire Hathaway since it owns 110.2 million shares that are worth $18.59 billion.

The London Company Large Cap Strategy made the following comment about Chevron Corporation (NYSE:CVX) in its first quarter 2023 investor letter:

“Initiated: Chevron Corporation (NYSE:CVX) – CVX is an integrated energy and chemical producer. Its upstream segment explores for, produces, processes and transfers energy products. Its downstream segment refines and markets these products in addition to industrial plastics and fuel and lubricant additives. Among the major oil companies, CVX is the most levered to oil and gas production; it has one of the most successful exploration programs and among the best production profiles. CVX also has less exposure to the downstream business, which provides an above-peer operating margin profile and supports CVX’s return on invested capital. CVX has one of the strongest balance sheets in the oil industry with net debt/EBITDA of just 0.1x. The combination of its low cost positioning and strong balance sheet gives us greater confidence in downside protection despite its ties to a volatile commodity. We’re attracted to management’s rational approach to capital allocation, with consideration for the full cycle. In terms of capital allocation, CVX just announced a $75B share repurchase plan, and it pays a healthy 3.5% dividend. We have owned CVX in the past and it is the only Energy exposure in the Large Cap portfolio.”