There Are Only a Handful of Dow Stocks That Yield Over 3%. Here's My Top Pick to Buy Before September Ends.
Chevron (CVX) is highlighted for its 3.4% dividend yield, highest among Dow non-telecom stocks. It signed a 20-year power deal with Microsoft (MSFT) for Project Kilby, ensuring stable cash flow. Chevron also plans investments in Angola and Venezuela. The company returned $27.1B to shareholders in 2025. The author recommends buying CVX before September ends, anticipating market underpricing of its power business.
How this was made
The 30-second read
Why it matters
The PPA adds a predictable revenue stream, supporting dividend sustainability and potentially lifting the stock.
Market read
New long‑term contract could re‑price Chevron as a hybrid energy‑utility, enhancing its dividend appeal.
What to watch
Potential regulatory or environmental challenges to large‑scale gas‑fired generation could affect long‑term profitability.
Background
The Dow index yields are low; investors seek higher‑yielding stocks. Chevron's dividend and new power‑purchase deal are presented as a way to boost income.
Ticker impact
Chevron signed a 20‑year power purchase agreement with Microsoft to supply electricity to a Texas data‑center project.
Potential upside as the market re‑prices the new steady‑cash‑flow business.
The take‑or‑pay PPA with a credit‑worthy buyer reduces earnings volatility and underpins the 3.4% dividend yield.
Market effects
Highlights growing convergence of energy and data‑center sectors, may boost other utility‑style energy stocks.
Texas energy market could see increased demand for natural‑gas‑fired generation.
Shows how major tech firms are sourcing clean, reliable power, influencing global energy‑tech partnerships.
Counterpoint
The contract may be a small portion of Chevron's overall business; core oil exposure still dominates risk.
Key entities
- CompanyChevron
U.S. integrated energy company (ticker CVX).
- CompanyMicrosoft
Technology giant purchasing power for its Texas data‑center.
