4. Chevron Corporation (NYSE:CVX)
Dividend Yield as of January 26: 4.28%
Number of Hedge Fund Holders: 51
Beta Value: 1.08
Chevron Corporation (NYSE:CVX), an American multinational energy company supplying gasoline, natural gas, and petrochemicals, made it to our list of the high beta dividend stocks since a beta value of 1.08 is associated with the company.
Chevron Corporation (NYSE:CVX) declared on January 25 a $1.42 per share quarterly dividend, which is a 6% increase from its prior dividend of $1.34. The dividend is payable on March 10, to shareholders of record on February 16. Chevron Corporation (NYSE:CVX) delivers a dividend yield of 4.28% as of January 26.
On January 14, 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 as part of a broader research note updating his Exploration & Production group model. While he increases his price estimates for oil-weighted energy names in 2022 and 2023, the analyst observes that the current natural gas strip has “largely flattened out”, driving price target declines across most of his covered natural gas names.
Of the 51 hedge funds that were bullish on Chevron Corporation (NYSE:CVX) in Q3 2021, Ric Dillon’s Diamond Hill Capital is the leading Chevron Corporation (NYSE:CVX) stakeholder, holding 5.1 million shares worth $523.8 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.”
