5 Best Natural Gas Dividend Stocks To Buy

2. Chesapeake Energy Corporation (NASDAQ:CHK)

Number of Hedge Fund Holders: 67

Dividend Yield as of October 28: 2.25%

Chesapeake Energy Corporation (NASDAQ:CHK) is one of the best natural gas dividend stocks to invest in. The Oklahoma-based company engages in the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids from underground reservoirs in the United States. 

Jefferies analyst Lloyd Byrne initiated coverage of Chesapeake Energy Corporation (NASDAQ:CHK) on October 19 with a Buy rating and a $150 price target. He believes the “Option Value” of energy is up again, driven by a restricted capital cycle. 

According to the second quarter database of Insider Monkey, 67 hedge funds were long Chesapeake Energy Corporation (NASDAQ:CHK), compared to 59 funds in the prior quarter. Howard Marks’ Oaktree Capital Management is the largest stakeholder of the company, with 10.5 million shares worth $851.6 million. 

Miller Value Partners made the following comment about Chesapeake Energy Corporation (NASDAQ:CHK) in its Q3 2022 investor letter:

“Chesapeake Energy Corporation (NASDAQ:CHK) gained 19.1% in the period. The company reported 2Q22 Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization, and Exploration Expense (EBITDAX) of $1,269MM, +195.8% Y/Y, ahead of consensus of $1,226MM, and Adjusted Earnings per Share (EPS) of $4.87, compared to 2Q21 EPS of $1.64, ahead of analyst expectations for EPS of $3.82. Chesapeake generated adjusted free cash flow (FCF) of $494MM, bringing TTM FCF to $1,663MM, or a FCF yield of 14.4%. Management also raised the company’s base dividend by 10% to $2.20/share, bringing the total quarterly dividend to $2.32/share, or an annualized yield of ~9.7%. Additionally, the company doubled its existing share repurchase authorization from $1B to $2B and has executed $670MM in repurchases so far through 7/31/22. Collectively, management is guiding for $1.2B in total FY22 dividends, at the midpoint, and $1B in share buybacks, implying total FY22 shareholder returns of $2.2B, or ~19.1% of the company’s market cap.”