Dividend Aristocrats Ranked By Yield: Top 10

7. Chevron Corporation (NYSE:CVX)

Dividend Yield as of June 25: 4.10%

Chevron Corporation (NYSE:CVX) ranks seventh on our list of the best dividend aristocrat stocks. The American energy company manufactures and sells fuels, additives, petrochemicals, and lubricants. Oil companies are consistently favorable for dividend investors because they are known for paying hefty dividends to shareholders. Even when low oil prices impact their cash flow, they often take on debt and leverage assets to maintain their payouts. Chevron Corporation (NYSE:CVX) is also generous with its dividend payments, despite crude oil prices fluctuating within a narrow range over the past few months and remaining below their 2022 peak of $120. In the first quarter of 2024, the company reported $6.8 billion in operating cash flow and its cash flow for the quarter came in at $2.7 billion. During the quarter, it returned $6 billion to shareholders through dividends and share repurchases. This was the company’s eighth consecutive quarter of generating shareholder returns of over $5 billion.

As an integrated oil and gas company, Chevron Corporation (NYSE:CVX) manages both upstream and downstream operations. This integrated model is effective because it balances the fluctuations in oil and gas prices. When prices rise, the company’s upstream operations can see substantial gains. For example, it generated $30 billion in operating income in 2022 due to higher oil prices. The company utilized this windfall to boost stock buybacks, reduce debt, and pursue acquisitions.

Chevron Corporation (NYSE:CVX), one of the best dividend aristocrat stocks on our list, has been rewarding shareholders with growing dividends for the past 37 years. Moreover, it has paid regular dividends to shareholders since 1984. The company’s quarterly dividend comes in at $1.63 per share for a dividend yield of 4.10%, as of June 25.

Insider Monkey’s database of Q1 2024 showed that 62 hedge funds owned stakes in Chevron Corporation (NYSE:CVX), worth collectively over $23.2 billion. Warren Buffett’s Berkshire Hathaway owned the largest stake in the company, valued at over $19.3 billion. The hedge fund started investing in the company during the third quarter of 2020. Since this, the stock has surged by over 104%.