1. Chevron Corporation (NYSE:CVX)
Dividend Yield as of January 14: 4.16%
Number of Hedge Fund Holders: 51
Number of Years of Dividend Increases: 34
Chevron Corporation (NYSE:CVX), a California-based multinational energy company operating in 180 countries, is a popular dividend aristocrat among the smart money. 51 hedge funds in the third quarter of 2021 reported owning stakes worth $4.4 billion in Chevron Corporation (NYSE:CVX).
Publishing its Q3 results on October 29, Chevron Corporation (NYSE:CVX) posted earnings per share of $2.96, exceeding estimates by $0.77. The quarterly revenue jumped 82.86% year-over-year to $44.71 billion, beating estimates by $3.86 billion.
Chevron Corporation (NYSE:CVX) paid a $1.34 per share quarterly dividend on December 10, in line with previous, to shareholders of record on November 18.
Truist analyst Neal Dingmann raised the price target on Chevron Corporation (NYSE:CVX) to $167 from $150 and kept a Buy rating on the shares on January 14. The analyst noted that more oil-weighted exploration and production names warrant higher price targets as he increases his 2022 oil price deck by about 10% and his 2023 deck by about 8%.
Fisher Asset Management is one of the biggest Chevron Corporation (NYSE:CVX) stakeholders as of Q3 2021, with 6.25 million shares worth $634.4 million.
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.”
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