Chevron (CVX -2.21%) is a leading global energy company. It boasts a globally integrated oil and gas business that includes exploration and production assets, refining capabilities, and a chemicals business. The company’s large-scale, integrated operations help it weather volatility in the energy sector.
Chevron uses the cash flows generated from its legacy oil and gas operations to pay a growing dividend, repurchase shares, and invest in the future. Chevron increased its dividend for the 39th straight year in 2026. It also plans to buy back between $10 billion and $20 billion of its stock each year.
The company expects to grow its cash flow by an additional $12.5 billion in 2026, assuming oil averages $70 a barrel. Drivers include recently completed expansion projects, its Permian Basin development program, cost-saving initiatives, and the successful closing of its acquisition of Hess. The Hess megadeal enhances and extends Chevron's production and free cash flow growth outlook into the 2030s. It can deliver more than 10% annual free cash flow growth through 2030 at $70 oil.
Chevron is also investing in the lower-carbon fuels the world will require in the future. It's focusing on carbon capture and storage, hydrogen, renewable fuels, and lithium. The balance makes it an ideal choice for investors seeking a way to invest in the energy transition from fossil fuels to cleaner alternatives.
4. NextEra Energy