10 Undervalued Dividend Aristocrats to Buy According to Hedge Funds

2. Chevron Corporation (NYSE:CVX)

Dividend Yield as of December 23: 4.56%

Number of Hedge Fund Holders: 63

P/E Ratio: 15.70

Chevron Corporation (NYSE:CVX) is a global energy and chemicals company operating through two primary segments – Upstream and Downstream. Chevron Corporation (NYSE:CVX) has signed a 20-year agreement to acquire 2 million metric tons of liquefied natural gas (LNG) annually from Energy Transfer LP’s proposed Lake Charles terminal in Louisiana, a former import facility. The deal adds to Energy Transfer’s existing agreements with companies like EQT Corp. and Shell Plc.

Chevron Corporation (NYSE:CVX) achieved strong financial and operational results, with a 7% increase in global production and record cash returns to shareholders. The company’s major milestones include accelerated turnarounds at TCO and Gorgon, new Gulf of Mexico projects boosting production to 300,000 barrels per day by 2026, and expanded CO2 storage in Australia. The successful PDC Energy merger exceeded synergy targets, adding over $1 billion in free cash flow. Moreover, low-carbon initiatives, such as tankless facilities and grid-powered rigs, are reducing emissions significantly. Upcoming projects remain on schedule, while $8 billion in asset sales from Canada, Alaska, and Congo reinforce Chevron’s portfolio optimization.

Chevron Corporation (NYSE:CVX) reported Q3 earnings of $4.5 billion or $2.48 per share and adjusted earnings of $2.51 per share. Cash flow hit its highest level this year despite lower oil prices, supported by reduced working capital, while share repurchases reached a record $4.7 billion. The company expects dividends to total approximately $1 billion this quarter. For 37 years in a row, CVX has steadily increased its dividend.

Insider Monkey’s Q3 data reveals that CVX appeared in 63 hedge fund portfolios. Warren Buffett’s Berkshire Hathaway was the biggest stakeholder in the company, with a stake worth nearly $17.5 billion.