In this article, we discuss the 5 best dividend champions to buy for 2022. If you want our detailed analysis of these stocks, go directly to 10 Best Dividend Champions to Buy for 2022.
5. Chevron Corporation (NYSE:CVX)
Dividend Yield as of January 20: 4.17%
Number of Years of Dividend Increases: 34
Number of Hedge Fund Holders: 51
Chevron Corporation (NYSE:CVX) is an American multinational energy corporation, serving customers in more than 180 countries. Chevron Corporation (NYSE:CVX) deals in oil, natural gas, hydrocarbon exploration, refining, marketing and transport, chemicals manufacturing, and power generation.
On October 27, Chevron Corporation (NYSE:CVX) declared a $1.34 per share quarterly dividend, in line with previous. The dividend was paid on December 10, to shareholders of record on November 18. Chevron Corporation (NYSE:CVX) made it to our list of the top dividend champions to buy for 2022, since the company has been elevating its dividend payments consistently for 34 years.
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 notes that more oil-weighted exploration and production names warrant higher price targets as he increases his 2022 oil price estimates by about 10% and his 2023 estimates by about 8%.
Berkshire Hathaway is the largest Chevron Corporation (NYSE:CVX) stakeholder as of the third quarter of 2021, with 28.70 million shares worth $2.91 million. Overall, 51 hedge funds were long Chevron Corporation (NYSE:CVX) in Q3, with stakes amounting to $4.4 billion.
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.”
