10 Best Halal Dividend Stocks To Invest In

4. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 63

Chevron Corporation (NYSE:CVX) ranks fourth on our list of the best halal stocks that pay dividends. The multinational energy company manufactures and sells a range of high-quality refined products. The company aims to remain profitable even when oil prices are moderate, ensuring it can fund capital projects and increase dividends. For this, it plans to achieve additional structural cost savings of $2 billion to $3 billion by 2026 while continuing to focus on maintaining a low-cost, high-margin production portfolio. In the past year, the stock has surged by nearly 10%.

Chevron Corporation (NYSE:CVX) already has a solid cash position, and the CEO recently revealed plans to increase free cash flow by $6 billion to $8 billion next year while also implementing cost reductions of several billion dollars. These gains are anticipated to come from new or expanded oil production projects in Kazakhstan, US shale regions, and the offshore Gulf of Mexico. In the most recent quarter, the company reported an operating cash flow of $9.7 billion, up from $6.3 billion in the same period last year. In addition, it returned $7.7 billion to shareholders through dividends and share repurchases.

Chevron Corporation (NYSE:CVX) currently offers a quarterly dividend of $1.63 per share and has a dividend yield of 4.17%, as of January 22. The company has been growing its dividends for the past 37 consecutive years. It continued to increase its dividends even during severe industry downturns, making it a solid choice for investors new to the sector who are looking for reliable foundational investments. While many exploration and production (E&P) companies carry greater risks, they also offer the potential for higher returns.

At the end of Q3 2023, 63 hedge funds tracked by Insider Monkey owned stakes in Chevron Corporation (NYSE:CVX), compared with 64 in the previous quarter. These stakes have a consolidated value of over $21 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q3.