4. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 53
Kahn Brothers’ Stake Value: $392,000
Dividend Yield as of February 22: 4.23%
Chevron Corporation (NYSE:CVX) is an American multinational energy company having operations in over 180 countries. In Q4 2021, the number of hedge funds tracked by Insider Monkey having stakes in the company grew slightly to 53, from 51 in Q3. The total value of these stakes is over $6.5 billion. Warren Buffett’s Berkshire Hathaway held stakes worth over $4.4 billion in Chevron Corporation (NYSE:CVX), becoming its largest shareholder in Q4.
Chevron Corporation (NYSE:CVX) is one of the best stocks for income investors as the company maintains a 35-year track record of consistent dividend growth. On January 26, the company hiked its quarterly dividend by 6% at $1.42 per share. The stock’s dividend yield stands at 4.23%, as of February 22. In February, Barclays lifted its price target on Chevron Corporation (NYSE:CVX) to $148, while keeping an ‘Overweight’ rating on the shares.
Kahn Brothers started building its position in Chevron Corporation (NYSE:CVX) sometime during the fourth quarter of 2010. In Q4 2021, the hedge fund held a stake worth $392,000 in the company, which accounted for 0.05% of its 13F portfolio.
Goehring & Rozencwajg Associates mentioned Chevron Corporation (NYSE:CVX) in its Q3 2021 investor letter. Here is what the firm had to say:
“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 publically 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.”
