Jim Cramer’s 5 Favorite Energy and Bank Stock Picks

3. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 66

Oil giant Chevron Corporation (NYSE:CVX) is also a part of Cramer’s favorite energy stock picks. Cramer mentioned the stock more than once in his recent programs. Cramer also noted that the company announced a hefty share buyback plan and also boosted its dividend. He also said that he would buy the stock right now.

On January 25, Chevron Corporation (NYSE:CVX) declared a quarterly cash dividend of $1.51 per share, up 6.3% from its prior dividend of $1.42. The dividend is payable on March 10 to investors of record on February 16. The company also announced a share repurchase program worth $75 billion that is expected to take effect on April 1, 2023. As of February 3, Chevron Corporation (NYSE:CVX) is offering a forward dividend yield of 3.52%.

This January, Truist analyst Neal Dingmann raised his price target on Chevron Corporation (NYSE:CVX) to $179 from $169 and reiterated a Hold rating on the shares.

At the end of Q3 2022, 66 hedge funds were bullish on Chevron Corporation (NYSE:CVX) and disclosed positions worth $27.13 billion in the company. As of December 31, Bailard Inc is the most prominent shareholder in the company and has a stake worth $4.26 million.

Here is what Madison Funds had to say about Chevron Corporation (NYSE:CVX) in its fourth-quarter 2022 investor letter:

“This quarter we are highlighting Chevron Corporation (NYSE:CVX) as a relative yield example in the Energy sector. CVX is a leading integrated oil company with exploration, production, and refining operations. It is the second largest oil company in the United States with more than 70% of production volumes from oil and liquid-linked natural gas. We believe it has a sustainable competitive advantage due to its scale and low-cost position. It has a large acreage position in the Permian Basin, which is a high-quality oil field. CVX was an early mover in the Permian and did not overpay to enter the oilfield; 75% of its position has a no or low royalty rate, which gives it a cost advantage over competitors.

Our thesis is that free cash flow growth per share is expected to accelerate due to disciplined capital spending, rising Permian production volumes, and stock repurchases. The company has also made important investments in low-carbon areas like greenhouse gas reduction, carbon capture, hydrogen, and renewable fuels which we believe will pay off later in the decade as the world transitions more to renewable energy sources…” (Click here to read the full text)