Three High-Yield Stocks for Long-Term Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 21 2026
0mins
Should l Buy CVX?
Source: Fool
- Chevron's Stable Returns: Chevron (CVX) currently offers a 3.9% dividend yield and has increased its dividend for 39 consecutive years, delivering over 180% total return in the past decade, with expectations of over 10% annual growth in free cash flow through 2030, highlighting its strong growth potential in energy transition.
- Clearway Energy's Robust Growth: Clearway Energy (CWEN) boasts a 4.7% dividend yield and a total return of 340% over the past decade, with projected annual cash flow growth of 7% to 8% through 2030, enhancing its dividend capacity through renewable asset acquisitions and increased existing asset capacity.
- Williams' Stability: Williams (WMB), a natural gas pipeline giant, offers a 3% dividend yield and has achieved a total return of 570% over the past decade, planning to invest heavily in new gas infrastructure to support over 10% annual earnings growth, ensuring continued dividend increases.
- Advantages of Automated Portfolios: These three companies possess strong dividend growth potential, making them ideal for investors to set up automatic dividend reinvestment plans, with long-term holdings likely to yield substantial returns, reflecting the strategic value of long-term investing.
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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: 181.620
Low
158.00
Averages
176.95
High
206.00
Current: 181.620
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.
Oil Stocks Surge Amid Ongoing Conflict in Iran
- Shareholder Return History: Chevron has returned over $5 billion in capital to shareholders over the last 16 quarters, with $3.5 billion allocated to dividends, demonstrating the company's ability to consistently reward investors even in volatile markets, thereby enhancing investor confidence.
- Low Break-even Point: Chevron maintains a break-even price of $50 per barrel for Brent crude oil, thanks to investments in high-quality assets and disciplined cost management, allowing it to generate higher free cash flow in the current environment where prices are nearing $100 per barrel.
- Optimistic Market Outlook: The U.S. Energy Information Administration projects oil prices could peak at $115 per barrel in the second quarter and not fall below $90 until the fourth quarter, providing a strong tailwind for Chevron's earnings and further solidifying its position in the energy market.
- Investment in High-margin Assets: Chevron focuses on high-margin assets such as the Permian Basin and the Gulf of Mexico, successfully integrating Hess to gain a 30% stake in the Stabroek Block, ensuring future growth potential and competitive strength in the market.
See More
Middle East Conflict Causes Global Oil Shortage
- Global Oil Shortage: Shell CEO Wael Sawan reports a global oil shortage of 1 billion barrels due to geopolitical conflicts in the Middle East, with recovery expected to take months, leading to sustained high energy prices that will impact the global market.
- Rising Energy Prices: Elevated oil prices will benefit integrated energy giants like Shell, ExxonMobil, and Chevron, with Chevron's 3.9% dividend yield surpassing both Shell and Exxon, demonstrating its stability throughout the energy cycle.
- Opportunities in U.S. Upstream Companies: Companies like Diamondback Energy and Devon Energy, focused solely on oil and gas production, estimate free cash flow yields of 15% at $90 per barrel oil, with Devon projecting a yield of 21% at $110 per barrel, highlighting their potential profitability.
- Market Volatility: While the Middle East conflict raises concerns, the inherent volatility of energy markets remains unchanged, prompting investors to choose strategies based on risk tolerance, with long-term investors favoring Chevron and short-term traders considering Diamondback and Devon Energy.
See More
Investors Shift to High Dividend Stocks Amid Market Volatility
- Increased Appeal of Dividend Stocks: In Q1 2026, nearly $22 billion flowed into dividend exchange-traded funds, marking the highest inflow since Q2 2022, indicating a trend of investors seeking relative safety amid market volatility.
- Uneven Market Performance: While the S&P 500 hit a new high on Monday, the market has been rocky this year due to factors like the Iran war, oil prices, and AI disruptions, leading to heightened demand for dividend stocks among investors.
- Analyst-Recommended Stocks: Stocks in the iShares Core High Dividend ETF have received buy or overweight ratings from over 55% of analysts, with expected price targets showing at least 15% upside, highlighting strong investment potential.
- Individual Stock Performance Analysis: For instance, AbbVie boasts a 3.4% dividend yield with 74% of analysts rating it a buy, while PNC Financial Services and PPL also show promising growth prospects with dividend yields of 3.1%, attracting investor interest.
See More
Closure of Strait of Hormuz Impacts Global Oil Market
- Accelerated Inventory Depletion: According to TotalEnergies CEO Patrick Pouyanne, the global economy has consumed at least 500 million barrels from inventories this year, a figure that continues to rise, indicating severe challenges for the global oil market.
- Production Drop: Oil production in the Persian Gulf has plummeted by 57% since the onset of the war with Iran, with global inventories being drawn down at a rate of 10 to 13 million barrels per day, leading to tight market conditions and expectations of sustained high oil prices.
- Production Restart Challenges: Even if the Strait of Hormuz were to reopen today, it would take time to restore oil supplies from the Persian Gulf, with some wells potentially requiring up to seven months to restart, further exacerbating global inventory tightness.
- Optimistic Price Outlook: JPMorgan forecasts that Brent crude prices will remain in triple digits through the third quarter, with expectations of $80 per barrel next year, positioning oil producers to generate cash flows significantly above initial expectations, enhancing their financial flexibility.
See More
Oil Price Fluctuations Impact Energy Stock Dividends
- Oil Price Impact: As of May 7, WTI futures fell 16.6%, yet remained around $95 per barrel, indicating that high oil prices could suppress demand during the upcoming summer travel season, creating pressure for investors.
- Attractive Energy Dividends: The Energy Select Sector SPDR ETF (XLE) has risen 39.4% year-to-date, with a dividend yield of 2.67%, more than double that of the S&P 500 index fund, highlighting the investment appeal of energy stocks.
- Antero Midstream Performance: Antero Midstream (AM) shares dropped 6.3% over the past month, but its Q1 free cash flow increased by 8%, and the company repurchased $18 million in stock, demonstrating a commitment to capital returns even in adversity.
- Chevron's Dividend Stability: Chevron (CVX) has increased its dividend for 39 consecutive years; despite a 5.3% decline in stock price due to falling oil prices, the company forecasts a capital spending and dividend breakeven below $50 per barrel, ensuring long-term shareholder returns.
See More
Analysis of URTH ETF's 52-Week High and Low Points
- 52-Week Price Range: URTH ETF's low point is $159.23 per share, with a high of $201.10, and the last trade at $201.09 indicates stability near the high, potentially attracting investor interest.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides valuable insights for investors, helping to assess market trends and potential buying opportunities.
- ETF Unit Trading Mechanism: ETFs trade similarly to stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in ETF units focuses on notable inflows (new units created) or outflows (old units destroyed), as these liquidity shifts can significantly affect the performance of the underlying stocks held within the ETF.
See More
Oil Stocks Surge Amid Ongoing Conflict in Iran
- Shareholder Return History: Chevron has returned over $5 billion in capital to shareholders over the last 16 quarters, with $3.5 billion allocated to dividends, demonstrating the company's ability to consistently reward investors even in volatile markets, thereby enhancing investor confidence.
- Low Break-even Point: Chevron maintains a break-even price of $50 per barrel for Brent crude oil, thanks to investments in high-quality assets and disciplined cost management, allowing it to generate higher free cash flow in the current environment where prices are nearing $100 per barrel.
- Optimistic Market Outlook: The U.S. Energy Information Administration projects oil prices could peak at $115 per barrel in the second quarter and not fall below $90 until the fourth quarter, providing a strong tailwind for Chevron's earnings and further solidifying its position in the energy market.
- Investment in High-margin Assets: Chevron focuses on high-margin assets such as the Permian Basin and the Gulf of Mexico, successfully integrating Hess to gain a 30% stake in the Stabroek Block, ensuring future growth potential and competitive strength in the market.
See More
Middle East Conflict Causes Global Oil Shortage
- Global Oil Shortage: Shell CEO Wael Sawan reports a global oil shortage of 1 billion barrels due to geopolitical conflicts in the Middle East, with recovery expected to take months, leading to sustained high energy prices that will impact the global market.
- Rising Energy Prices: Elevated oil prices will benefit integrated energy giants like Shell, ExxonMobil, and Chevron, with Chevron's 3.9% dividend yield surpassing both Shell and Exxon, demonstrating its stability throughout the energy cycle.
- Opportunities in U.S. Upstream Companies: Companies like Diamondback Energy and Devon Energy, focused solely on oil and gas production, estimate free cash flow yields of 15% at $90 per barrel oil, with Devon projecting a yield of 21% at $110 per barrel, highlighting their potential profitability.
- Market Volatility: While the Middle East conflict raises concerns, the inherent volatility of energy markets remains unchanged, prompting investors to choose strategies based on risk tolerance, with long-term investors favoring Chevron and short-term traders considering Diamondback and Devon Energy.
See More
Investors Shift to High Dividend Stocks Amid Market Volatility
- Increased Appeal of Dividend Stocks: In Q1 2026, nearly $22 billion flowed into dividend exchange-traded funds, marking the highest inflow since Q2 2022, indicating a trend of investors seeking relative safety amid market volatility.
- Uneven Market Performance: While the S&P 500 hit a new high on Monday, the market has been rocky this year due to factors like the Iran war, oil prices, and AI disruptions, leading to heightened demand for dividend stocks among investors.
- Analyst-Recommended Stocks: Stocks in the iShares Core High Dividend ETF have received buy or overweight ratings from over 55% of analysts, with expected price targets showing at least 15% upside, highlighting strong investment potential.
- Individual Stock Performance Analysis: For instance, AbbVie boasts a 3.4% dividend yield with 74% of analysts rating it a buy, while PNC Financial Services and PPL also show promising growth prospects with dividend yields of 3.1%, attracting investor interest.
See More
Closure of Strait of Hormuz Impacts Global Oil Market
- Accelerated Inventory Depletion: According to TotalEnergies CEO Patrick Pouyanne, the global economy has consumed at least 500 million barrels from inventories this year, a figure that continues to rise, indicating severe challenges for the global oil market.
- Production Drop: Oil production in the Persian Gulf has plummeted by 57% since the onset of the war with Iran, with global inventories being drawn down at a rate of 10 to 13 million barrels per day, leading to tight market conditions and expectations of sustained high oil prices.
- Production Restart Challenges: Even if the Strait of Hormuz were to reopen today, it would take time to restore oil supplies from the Persian Gulf, with some wells potentially requiring up to seven months to restart, further exacerbating global inventory tightness.
- Optimistic Price Outlook: JPMorgan forecasts that Brent crude prices will remain in triple digits through the third quarter, with expectations of $80 per barrel next year, positioning oil producers to generate cash flows significantly above initial expectations, enhancing their financial flexibility.
See More
Oil Price Fluctuations Impact Energy Stock Dividends
- Oil Price Impact: As of May 7, WTI futures fell 16.6%, yet remained around $95 per barrel, indicating that high oil prices could suppress demand during the upcoming summer travel season, creating pressure for investors.
- Attractive Energy Dividends: The Energy Select Sector SPDR ETF (XLE) has risen 39.4% year-to-date, with a dividend yield of 2.67%, more than double that of the S&P 500 index fund, highlighting the investment appeal of energy stocks.
- Antero Midstream Performance: Antero Midstream (AM) shares dropped 6.3% over the past month, but its Q1 free cash flow increased by 8%, and the company repurchased $18 million in stock, demonstrating a commitment to capital returns even in adversity.
- Chevron's Dividend Stability: Chevron (CVX) has increased its dividend for 39 consecutive years; despite a 5.3% decline in stock price due to falling oil prices, the company forecasts a capital spending and dividend breakeven below $50 per barrel, ensuring long-term shareholder returns.
See More
Analysis of URTH ETF's 52-Week High and Low Points
- 52-Week Price Range: URTH ETF's low point is $159.23 per share, with a high of $201.10, and the last trade at $201.09 indicates stability near the high, potentially attracting investor interest.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides valuable insights for investors, helping to assess market trends and potential buying opportunities.
- ETF Unit Trading Mechanism: ETFs trade similarly to stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in ETF units focuses on notable inflows (new units created) or outflows (old units destroyed), as these liquidity shifts can significantly affect the performance of the underlying stocks held within the ETF.
See More
