10 Best Dividend Aristocrats with Over 3% Yield

7. Chevron Corporation (NYSE:CVX)

Dividend Yield as of July 17: 4.08%

When it comes to dividend stocks, energy companies are at the forefront, as they are renowned for their generous dividend payments to shareholders. Chevron Corporation (NYSE:CVX) is no exception. The American energy company has never missed a single dividend since 1984 and has raised its payouts for 37 consecutive years. Its quarterly dividend currently comes in at $1.63 per share for a dividend yield of 4.08%, as of July 17. It is among the best dividend aristocrat stocks on our list.

Dividends have long been a favored method of returning capital to shareholders for oil companies. Even when low oil prices affect their cash flow, they frequently incur debt and leverage assets to sustain their payouts. That isn’t the case with Chevron Corporation (NYSE:CVX). The company is gaining traction with investors thanks to its robust cash flow, which acts as a safety net against fluctuating oil prices. In the first quarter of 2024, the company reported an operating cash flow of $6.8 billion and its free cash flow for the period came in at $2.7 billion. Due to this strong cash generation, the company remained committed to its shareholder return, distributing $6 billion among investors through dividends and share repurchases. This marked the company’s eighth straight quarter of providing over $5 billion in shareholder returns.

According to analysts, Chevron Corporation (NYSE:CVX) is well-positioned to benefit from an anticipated increase in natural gas demand, driven by the growing number of data centers. According to the company’s CEO, Mike Wirth, natural gas demand is expected to exceed expectations due to rising electricity consumption driven by artificial intelligence and data centers. Wirth further mentioned that data centers operate around the clock without interruption. He emphasized the importance of maintaining a reliable baseload supply to meet these continuous demands and expressed his belief that natural gas would play a significant role in meeting future energy needs.

Warren Buffett’s Berkshire Hathaway was the largest stakeholder of Chevron Corporation (NYSE:CVX) at the end of Q1 2024, owning roughly 123 million shares. Overall, 62 hedge funds tracked by Insider Monkey held positions in the company, worth collectively over $23.2 billion.