Clearway Energy and Chevron Show Strong Dividend Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy CVX?
Source: NASDAQ.COM
- Clean Energy Growth Potential: Clearway Energy expects to grow its free cash flow per share at a compound annual rate of 7% to 8% through 2030, supported by long-term power purchase agreements (PPAs) that provide stable cash flow, thus sustaining its 4.7% dividend yield.
- Stable Earnings from Oil Giant: Chevron anticipates adding $12.5 billion to its annual free cash flow this year, primarily driven by its merger with Hess and expansion projects, demonstrating strong financial resilience as it can cover its capital spending and 3.9% dividend even at oil prices below $50.
- Infrastructure Investment Outlook: Kinder Morgan has $10 billion in growth capital projects underway, expected to be completed by 2030, which will support its stable 3.6% dividend yield and drive future cash flow growth.
- Demand-Driven Energy Sector: With ongoing growth in demand for clean energy and natural gas, the high-yield dividends from Clearway, Chevron, and Kinder Morgan are expected to continue increasing, making them ideal long-term investment choices.
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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: 183.930
Low
158.00
Averages
176.95
High
206.00
Current: 183.930
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 Signs Preliminary Deal to Acquire Iraq's West Qurna 2 Oil Field
- Acquisition Progress: Chevron has signed a preliminary deal with Basra Oil Company to explore the potential acquisition of Iraq's West Qurna 2 oil field, moving closer to acquiring the project from sanctioned Russian firm Lukoil.
- Exclusive Negotiation Framework: The agreements allow for the exchange of confidential data during a one-year exclusive negotiation period, establishing a collaborative foundation between Chevron and the Iraqi state-run firm, which is expected to expedite the transaction process.
- Contract Transfer Arrangement: A framework agreement was signed among Basra Oil, Chevron, and Lukoil to allow the temporary transfer of the contract to Basra, which will then assign it to Chevron upon completion of negotiations, ensuring a smooth transaction process.
- Approval Conditions: Chevron stated that the agreements will only take effect upon approval from Iraq's Council of Ministers and the U.S. Treasury Department's Office of Foreign Assets Control, a process that will impact the finalization of the deal.
See More
Clearway Energy and Chevron Show Strong Dividend Growth Potential
- Clean Energy Growth Potential: Clearway Energy expects to grow its free cash flow per share at a compound annual rate of 7% to 8% through 2030, supported by long-term power purchase agreements (PPAs) that provide stable cash flow, thus sustaining its 4.7% dividend yield.
- Stable Earnings from Oil Giant: Chevron anticipates adding $12.5 billion to its annual free cash flow this year, primarily driven by its merger with Hess and expansion projects, demonstrating strong financial resilience as it can cover its capital spending and 3.9% dividend even at oil prices below $50.
- Infrastructure Investment Outlook: Kinder Morgan has $10 billion in growth capital projects underway, expected to be completed by 2030, which will support its stable 3.6% dividend yield and drive future cash flow growth.
- Demand-Driven Energy Sector: With ongoing growth in demand for clean energy and natural gas, the high-yield dividends from Clearway, Chevron, and Kinder Morgan are expected to continue increasing, making them ideal long-term investment choices.
See More
High-Yield Dividend Prospects in Energy Stocks
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- Oil Giant Cash Flow: Chevron anticipates adding $12.5 billion to its annual free cash flow this year, driven by its merger with Hess and expansion projects, and expects to achieve over 10% annual free cash flow growth at $70 oil, ensuring its 39 consecutive years of dividend increases.
- Infrastructure Stability: Kinder Morgan, operating the largest gas pipeline transmission network in the U.S., has $10 billion in growth capital projects expected to complete by 2030, which will support its 3.6% dividend yield and drive future cash flow growth.
- Long-Term Investment Potential: All three companies are making strategic investments in clean energy and infrastructure, showcasing strong long-term growth potential, making them ideal dividend stocks for long-term holding to generate passive income.
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- Enterprise Products Partners' Low Risk: As a service provider in energy infrastructure, Enterprise Products Partners boasts a 6% dividend yield, with income primarily driven by transportation volumes rather than commodity prices, ensuring stable cash flow even during low oil price periods, appealing to income-focused investors.
- Brookfield Renewable Partners' Diversification: Brookfield Renewable Partners focuses on clean energy investments, with assets across solar, wind, and hydroelectric sectors, currently offering a 5% yield, and its decade-long distribution growth history positions it as a compelling option amid the energy transition.
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- Regional Retaliation Plans: Iranian Foreign Minister Abbas Araghchi stated that if the US attacks, Iran will target American bases in the region, demonstrating Iran's firm stance in the face of threats and the potential for broader conflict.
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See More
Chevron Signs Preliminary Deal to Acquire Iraq's West Qurna 2 Oil Field
- Acquisition Progress: Chevron has signed a preliminary deal with Basra Oil Company to explore the potential acquisition of Iraq's West Qurna 2 oil field, moving closer to acquiring the project from sanctioned Russian firm Lukoil.
- Exclusive Negotiation Framework: The agreements allow for the exchange of confidential data during a one-year exclusive negotiation period, establishing a collaborative foundation between Chevron and the Iraqi state-run firm, which is expected to expedite the transaction process.
- Contract Transfer Arrangement: A framework agreement was signed among Basra Oil, Chevron, and Lukoil to allow the temporary transfer of the contract to Basra, which will then assign it to Chevron upon completion of negotiations, ensuring a smooth transaction process.
- Approval Conditions: Chevron stated that the agreements will only take effect upon approval from Iraq's Council of Ministers and the U.S. Treasury Department's Office of Foreign Assets Control, a process that will impact the finalization of the deal.
See More
Clearway Energy and Chevron Show Strong Dividend Growth Potential
- Clean Energy Growth Potential: Clearway Energy expects to grow its free cash flow per share at a compound annual rate of 7% to 8% through 2030, supported by long-term power purchase agreements (PPAs) that provide stable cash flow, thus sustaining its 4.7% dividend yield.
- Stable Earnings from Oil Giant: Chevron anticipates adding $12.5 billion to its annual free cash flow this year, primarily driven by its merger with Hess and expansion projects, demonstrating strong financial resilience as it can cover its capital spending and 3.9% dividend even at oil prices below $50.
- Infrastructure Investment Outlook: Kinder Morgan has $10 billion in growth capital projects underway, expected to be completed by 2030, which will support its stable 3.6% dividend yield and drive future cash flow growth.
- Demand-Driven Energy Sector: With ongoing growth in demand for clean energy and natural gas, the high-yield dividends from Clearway, Chevron, and Kinder Morgan are expected to continue increasing, making them ideal long-term investment choices.
See More
High-Yield Dividend Prospects in Energy Stocks
- Clean Energy Growth: Clearway Energy, one of the largest owners of clean power assets in the U.S., expects to grow its free cash flow per share at a compound annual rate of 7% to 8% through 2030, supporting its 4.7% dividend yield and enhancing its competitive position in the renewable energy market.
- Oil Giant Cash Flow: Chevron anticipates adding $12.5 billion to its annual free cash flow this year, driven by its merger with Hess and expansion projects, and expects to achieve over 10% annual free cash flow growth at $70 oil, ensuring its 39 consecutive years of dividend increases.
- Infrastructure Stability: Kinder Morgan, operating the largest gas pipeline transmission network in the U.S., has $10 billion in growth capital projects expected to complete by 2030, which will support its 3.6% dividend yield and drive future cash flow growth.
- Long-Term Investment Potential: All three companies are making strategic investments in clean energy and infrastructure, showcasing strong long-term growth potential, making them ideal dividend stocks for long-term holding to generate passive income.
See More
Wall Street's Shift in Software Stock Sentiment
- Price Target Cuts: Analysts from Cantor Fitzgerald, Morgan Stanley, and Jefferies have lowered price targets for Workday, indicating a growing concern about the software sector's outlook, which could lead to diminished investor confidence and impact stock performance.
- Emergence of HALO Concept: The new HALO (Heavy Asset, Low Obsolescence) concept suggests that investors are favoring companies deemed resilient under AI pressures, potentially resulting in capital outflows from traditional software stocks and affecting their long-term valuations.
- Valuation Dynamics Shift: Six sectors, including energy, industrials, and healthcare, have seen earnings-based valuations rise significantly over the past six months, surpassing their five-year averages, indicating a growing preference for these cyclical industries in the market.
- Increased Market Uncertainty: While tech stocks appear undervalued, fear surrounding future earnings estimates has weakened investor confidence, potentially leading to heightened market volatility and impacting investment decisions.
See More
Investment Opportunities in Energy Stocks
- Chevron's Stable Returns: Chevron has increased its dividend annually for over three decades, currently offering a 3.8% yield, making it an ideal choice for conservative investors, especially given its strong balance sheet that supports its operations amid volatile oil prices.
- Enterprise Products Partners' Low Risk: As a service provider in energy infrastructure, Enterprise Products Partners boasts a 6% dividend yield, with income primarily driven by transportation volumes rather than commodity prices, ensuring stable cash flow even during low oil price periods, appealing to income-focused investors.
- Brookfield Renewable Partners' Diversification: Brookfield Renewable Partners focuses on clean energy investments, with assets across solar, wind, and hydroelectric sectors, currently offering a 5% yield, and its decade-long distribution growth history positions it as a compelling option amid the energy transition.
- Attractiveness of Energy Stocks: Chevron, Enterprise, and Brookfield Renewable Partners combine high yields with strong fundamentals, making them suitable for long-term dividend investors seeking opportunities in the energy sector, particularly as February comes to a close.
See More
Trump Gives Iran 15 Days to Reach Deal or Face Consequences
- Military Threat Escalation: Trump has given Iran 15 days to reach a deal or face consequences, with Iran's Foreign Ministry spokesman stating that any limited military strike would be considered aggression, indicating a high level of tension in the situation.
- Regional Retaliation Plans: Iranian Foreign Minister Abbas Araghchi stated that if the US attacks, Iran will target American bases in the region, demonstrating Iran's firm stance in the face of threats and the potential for broader conflict.
- Market Reaction: The Polymarket platform has seen over $373 million wagered on whether the US will strike Iran by the end of the month, with traders pricing a 59% chance of a strike by March 31, reflecting heightened market concern over escalating tensions.
- Nuclear Deal Stalemate: Vice President JD Vance noted that Iran has yet to acknowledge Trump's core conditions, including zero uranium enrichment on Iranian soil, and Iran considers its ballistic missile program non-negotiable, with a third round of talks scheduled in Geneva, highlighting the challenges in reaching an agreement.
See More
