13 Highest Yielding Dividend Stocks in the Dow

2. Chevron Corporation (NYSE:CVX)

Dividend Yield as of January 16: 4.09%

An American multinational energy company, Chevron Corporation (NYSE:CVX) ranks second on our list of the highest yielding dividend stocks in the Dow. The company has been attracting investor interest due to its extensive operations and strong cash flow generation. The CEO recently stated that the company is on track to boost its free cash flow by $6 billion to $8 billion next year while cutting expenses by several billion dollars. The anticipated results are expected to be driven by the launch of new or expanded oil production projects in Kazakhstan, US shale, and the offshore Gulf of Mexico.

In August, Chevron Corporation (NYSE:CVX) began producing oil from a groundbreaking deepwater field in the US Gulf of Mexico, operating under extreme pressure. Once fully operational, the project is expected to produce up to 75,000 barrels of oil per day. In addition, the company has two more offshore projects planned to follow. The company posted strong earnings for the third quarter of 2024, with revenues totaling $50.67 billion, exceeding analysts’ expectations by $1.63 billion. It also saw a 7% year-over-year increase in global production, reaching nearly 3.4 million barrels of oil equivalent per day (BOE/d). This growth was driven by record production in the Permian Basin and the acquisition of PDC Energy.

Chevron Corporation (NYSE:CVX) also demonstrated a solid cash position in the most recent quarter. The company generated $9.7 billion in operating cash flow, growing from $46.3 billion in the prior-year period. Moreover, it paid $7.7 billion to shareholders through dividends and share buybacks. Due to this cash generation, the company’s dividend growth streak spans over 37 years and it currently offers a quarterly dividend of $1.63 per share. The stock has a dividend yield of 4.09%, as of January 16.

By the end of Q3 2024, Chevron Corporation (NYSE:CVX) was held in 63 hedge fund portfolios, a slight decrease from 64 in the previous quarter, according to Insider Monkey’s database. The total value of the stakes held by these hedge funds surpasses $21 billion.