4. Chevron Corporation (NYSE:CVX)
Dividend Yield as of January 25: 4.07%
Number of Hedge Fund Holders: 51
Number of Years of Consecutive Dividend Increases: 34
Chevron Corporation (NYSE:CVX) has consistently increased its dividend payouts for 34 years. Chevron Corporation (NYSE:CVX) is a California-based multinational energy corporation that supplies gasoline, natural gas, oil, and other petrochemicals.
On October 27, Chevron Corporation (NYSE:CVX) declared a $1.34 per share quarterly dividend, in line with previous. The dividend was paid on December 10, to shareholders of record on November 18.
Truist analyst Neal Dingmann on January 14 kept a Buy rating on Chevron Corporation (NYSE:CVX), elevating the price target to $167 from $150. The analyst noted that oil-weighted exploration and production names warrant higher price targets as he increased his 2022 oil price estimates by approximately 10% and 2023 estimates by roughly 8%.
Ric Dillon’s Diamond Hill Capital is the leading stakeholder of Chevron Corporation (NYSE:CVX), owning 5.1 million shares worth $523.8 million. The Q3 data of Insider Monkey reported that 51 hedge funds were bullish on Chevron Corporation (NYSE:CVX), with stakes equaling $4.4 billion.
Here is what Goehring & Rozencwajg Associates has to say about Chevron Corporation (NYSE:CVX) in its Q3 2021 investor letter:
“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.
What should Chevron expect?
It was recently reported by The Wall Street Journal that Exxon was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publicly expressed concerns about both projects. According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”
