Energy Stocks Gain Appeal with Significant Dividend Yields
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- Energy Sector Appeal: While the S&P 500's dividend yield is only 1.1%, the energy sector boasts a yield of 2.7%, highlighting investment opportunities, particularly with 69 U.S.-listed energy stocks yielding over 3%.
- Chevron's Reliability: Chevron (CVX) offers a 3.7% dividend yield and has increased its payout for 39 consecutive years, demonstrating reliability and cost management that allows it to remain profitable even when oil prices decline.
- Delek Logistics Growth Potential: Delek Logistics (DKL), with a market cap of $2.7 billion, has an impressive 8.8% dividend yield and is projected to achieve 23.7% year-over-year earnings growth in 2026, showcasing its competitive edge in the midstream energy sector.
- Kinetik's Market Opportunities: Kinetik Holdings (KNTK) yields 6.3% and has reiterated its 2026 EBITDA guidance, with management noting significant insulation from oil price fluctuations and plans for stock buybacks to enhance shareholder returns.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 183.030
Low
158.00
Averages
176.95
High
206.00
Current: 183.030
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Chevron Seeks Approval to Acquire 70% Stake in Greek Offshore Block
- Acquisition Request: Chevron has formally requested approval from the Greek energy ministry to acquire a 70% stake in an offshore block southwest of Greece, which would further expand its operations in the Mediterranean and enhance its market position in the region.
- Operational Role: If approved, Chevron would become the operator and lead the gas exploration in Block 2 in the Ionian Sea, with Helleniq Energy retaining a 30% stake, which currently holds 100% of the concession rights, indicating a significant shift in operational control.
- Data Evaluation Extension: The Greek government is considering granting Chevron and Helleniq more time to evaluate completed seismic data, which will influence their decision on exploratory drilling, reflecting the government's emphasis on foreign investment participation.
- Partnership Dynamics: Chevron and Helleniq are partners in several offshore exploration blocks, having recently signed lease agreements for four offshore blocks south of Crete and the Peloponnese, demonstrating a deepening collaboration in the Greek market.
See More
Chevron CEO Urges Venezuela to Lower Taxes for Investment
- Investment Climate Call: Chevron CEO Mike Wirth stated that Venezuela needs to lower oil taxes and royalties to attract new investments, as the current tax burden makes it difficult for investors to achieve reasonable returns.
- Debt Repayment Outlook: Wirth mentioned that Chevron is currently only investing its earnings in Venezuela and expects to fully repay its debt to the state-owned oil company PDVSA within a year, indicating cautious optimism for the future.
- Negotiation Progress: American oil giants Chevron, Exxon Mobil, and ConocoPhillips are in discussions with Venezuelan officials regarding terms under the new oil and gas laws, with Wirth expecting specific information on corporate income tax and royalties to be disclosed soon.
- Production Plan Adjustment: Chevron plans to increase oil production in Venezuela by 50% over the next two years, but will not commit additional capital until more clarity on the regulatory environment is provided, reflecting uncertainty in the investment landscape.
See More
Energy Stocks Decline as Nextpower Acquires Battery Firm
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- Nextpower Acquisition: Nextpower's stock surged 13% following its announcement of acquiring battery storage company Prevalon Energy for approximately $365 million, while also raising its full-year revenue guidance, indicating its strategic expansion in the renewable energy sector.
- Dell Technologies Surge: Dell Technologies' shares jumped 29% after raising its full-year guidance, projecting adjusted earnings of $17.90 per share and revenue between $165 billion and $169 billion, significantly exceeding analyst expectations, showcasing strong market demand recovery.
- American Eagle's Poor Performance: American Eagle Outfitters' shares dropped 13% as comparable sales at its American Eagle banner fell 2% in Q1, with second-quarter guidance disappointing analysts, highlighting the sales pressure and intensified competition it faces.
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Chevron Appoints New General Counsel
- Executive Transition: Chevron announced the retirement of current General Counsel R. Hewitt Pate in mid-2027, appointing Scott A. Keller as the new General Counsel, who will officially join on July 1 and is expected to take over Pate's role on January 1, 2027, ensuring continuity and stability in legal affairs.
- Legal Expertise: Keller brings extensive legal experience, having served as Solicitor General of Texas and argued over ten cases at both the U.S. Supreme Court and Texas Supreme Court, showcasing his exceptional capability in complex legal matters, which is expected to enhance Chevron's legal support.
- Pate's Contributions: Under Pate's leadership, Chevron successfully navigated several significant legal challenges, including the international arbitration related to the Hess Corporation and a multibillion-dollar lawsuit in Ecuador, demonstrating his crucial role in shaping the company's legal strategy, which Keller will continue.
- Strategic Direction: Chevron is committed to maintaining competitiveness in the global energy market, and Keller's appointment not only emphasizes the importance of legal affairs but also reflects the company's strategic focus on legal compliance and risk management in a complex business environment.
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Occidental Petroleum Acquires Stake in Trinidad Deepwater Block
- Stake Acquisition: Occidental Petroleum is acquiring a 10% interest in ExxonMobil's Ultra Deep 1 block offshore Trinidad and Tobago, gaining access to a high-potential deepwater exploration area that enhances its global business diversification.
- Resource Potential: The block is adjacent to Exxon's Stabroek block, which has made 30 discoveries totaling 11 billion barrels of recoverable oil and gas, currently producing 900,000 barrels per day and aiming for 1.7 million barrels by 2030, indicating significant upside potential.
- Investment Plans: ExxonMobil plans to invest $42 million for seismic surveys and potentially drill two exploration wells six months post-survey completion, which could provide Occidental with a long-term growth catalyst if successful.
- Strategic Implications: This acquisition allows Occidental to replenish resources to counter production declines while further diversifying its investment portfolio globally, thereby enhancing its competitive position in the oil and gas sector.
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Analysis of High-Yield Dividend ETF Investments
- Overview of High-Yield ETFs: The Vanguard High Dividend Yield ETF (VYM) includes 608 stocks with a current dividend yield of 2.24%, and while it has underperformed the S&P 500 over the past five years, it has outperformed it in 2026, indicating its potential for providing steady income during volatile periods.
- Portfolio Diversification: VYM's largest sector is financials (20.2%), followed by technology (14.8%) and industrials (14.2%), allowing investors to diversify risks across different economic sectors and reduce reliance on a single industry.
- Schwab Dividend ETF Performance: The Schwab U.S. Dividend Equity ETF (SCHD) holds 103 stocks with a dividend yield of 3.29%, and although its long-term performance has lagged behind VYM and the S&P 500, it has shown strong performance in 2026 with a year-to-date total return of about 17.8%.
- Considerations for ETF Selection: When choosing between VYM and SCHD, investors should consider diversification and safety, as VYM offers greater diversification with 608 stocks, while SCHD is more attractive in terms of dividend yield, making it suitable for those seeking stable income.
See More
Chevron Seeks Approval to Acquire 70% Stake in Greek Offshore Block
- Acquisition Request: Chevron has formally requested approval from the Greek energy ministry to acquire a 70% stake in an offshore block southwest of Greece, which would further expand its operations in the Mediterranean and enhance its market position in the region.
- Operational Role: If approved, Chevron would become the operator and lead the gas exploration in Block 2 in the Ionian Sea, with Helleniq Energy retaining a 30% stake, which currently holds 100% of the concession rights, indicating a significant shift in operational control.
- Data Evaluation Extension: The Greek government is considering granting Chevron and Helleniq more time to evaluate completed seismic data, which will influence their decision on exploratory drilling, reflecting the government's emphasis on foreign investment participation.
- Partnership Dynamics: Chevron and Helleniq are partners in several offshore exploration blocks, having recently signed lease agreements for four offshore blocks south of Crete and the Peloponnese, demonstrating a deepening collaboration in the Greek market.
See More
Chevron CEO Urges Venezuela to Lower Taxes for Investment
- Investment Climate Call: Chevron CEO Mike Wirth stated that Venezuela needs to lower oil taxes and royalties to attract new investments, as the current tax burden makes it difficult for investors to achieve reasonable returns.
- Debt Repayment Outlook: Wirth mentioned that Chevron is currently only investing its earnings in Venezuela and expects to fully repay its debt to the state-owned oil company PDVSA within a year, indicating cautious optimism for the future.
- Negotiation Progress: American oil giants Chevron, Exxon Mobil, and ConocoPhillips are in discussions with Venezuelan officials regarding terms under the new oil and gas laws, with Wirth expecting specific information on corporate income tax and royalties to be disclosed soon.
- Production Plan Adjustment: Chevron plans to increase oil production in Venezuela by 50% over the next two years, but will not commit additional capital until more clarity on the regulatory environment is provided, reflecting uncertainty in the investment landscape.
See More
Energy Stocks Decline as Nextpower Acquires Battery Firm
- Energy Sector Decline: Energy stocks fell for the fourth consecutive day after President Trump indicated a potential deal to end the U.S.-Iran conflict, with OneOK leading the S&P 500 energy sector down over 3%, reflecting market concerns about the industry's outlook.
- Nextpower Acquisition: Nextpower's stock surged 13% following its announcement of acquiring battery storage company Prevalon Energy for approximately $365 million, while also raising its full-year revenue guidance, indicating its strategic expansion in the renewable energy sector.
- Dell Technologies Surge: Dell Technologies' shares jumped 29% after raising its full-year guidance, projecting adjusted earnings of $17.90 per share and revenue between $165 billion and $169 billion, significantly exceeding analyst expectations, showcasing strong market demand recovery.
- American Eagle's Poor Performance: American Eagle Outfitters' shares dropped 13% as comparable sales at its American Eagle banner fell 2% in Q1, with second-quarter guidance disappointing analysts, highlighting the sales pressure and intensified competition it faces.
See More
Chevron Appoints New General Counsel
- Executive Transition: Chevron announced the retirement of current General Counsel R. Hewitt Pate in mid-2027, appointing Scott A. Keller as the new General Counsel, who will officially join on July 1 and is expected to take over Pate's role on January 1, 2027, ensuring continuity and stability in legal affairs.
- Legal Expertise: Keller brings extensive legal experience, having served as Solicitor General of Texas and argued over ten cases at both the U.S. Supreme Court and Texas Supreme Court, showcasing his exceptional capability in complex legal matters, which is expected to enhance Chevron's legal support.
- Pate's Contributions: Under Pate's leadership, Chevron successfully navigated several significant legal challenges, including the international arbitration related to the Hess Corporation and a multibillion-dollar lawsuit in Ecuador, demonstrating his crucial role in shaping the company's legal strategy, which Keller will continue.
- Strategic Direction: Chevron is committed to maintaining competitiveness in the global energy market, and Keller's appointment not only emphasizes the importance of legal affairs but also reflects the company's strategic focus on legal compliance and risk management in a complex business environment.
See More
Occidental Petroleum Acquires Stake in Trinidad Deepwater Block
- Stake Acquisition: Occidental Petroleum is acquiring a 10% interest in ExxonMobil's Ultra Deep 1 block offshore Trinidad and Tobago, gaining access to a high-potential deepwater exploration area that enhances its global business diversification.
- Resource Potential: The block is adjacent to Exxon's Stabroek block, which has made 30 discoveries totaling 11 billion barrels of recoverable oil and gas, currently producing 900,000 barrels per day and aiming for 1.7 million barrels by 2030, indicating significant upside potential.
- Investment Plans: ExxonMobil plans to invest $42 million for seismic surveys and potentially drill two exploration wells six months post-survey completion, which could provide Occidental with a long-term growth catalyst if successful.
- Strategic Implications: This acquisition allows Occidental to replenish resources to counter production declines while further diversifying its investment portfolio globally, thereby enhancing its competitive position in the oil and gas sector.
See More
Analysis of High-Yield Dividend ETF Investments
- Overview of High-Yield ETFs: The Vanguard High Dividend Yield ETF (VYM) includes 608 stocks with a current dividend yield of 2.24%, and while it has underperformed the S&P 500 over the past five years, it has outperformed it in 2026, indicating its potential for providing steady income during volatile periods.
- Portfolio Diversification: VYM's largest sector is financials (20.2%), followed by technology (14.8%) and industrials (14.2%), allowing investors to diversify risks across different economic sectors and reduce reliance on a single industry.
- Schwab Dividend ETF Performance: The Schwab U.S. Dividend Equity ETF (SCHD) holds 103 stocks with a dividend yield of 3.29%, and although its long-term performance has lagged behind VYM and the S&P 500, it has shown strong performance in 2026 with a year-to-date total return of about 17.8%.
- Considerations for ETF Selection: When choosing between VYM and SCHD, investors should consider diversification and safety, as VYM offers greater diversification with 608 stocks, while SCHD is more attractive in terms of dividend yield, making it suitable for those seeking stable income.
See More
