Chevron Surges Ahead with Stable Power Deal
The Dow Jones Industrial Average has a surprisingly low yield of around 1.5% due to rising share prices outpacing dividend growth.
However, there are a handful of Dow stocks offering yields near 3% or higher, with Chevron standing out among them.
Chevron's wholly owned subsidiary Energy Forge One signed a 20-year power purchase agreement with Microsoft in June to supply electricity to a data center campus in Texas.
This development, called Project Kilby, is designed to reach roughly 2.67 gigawatts of capacity and could provide a stable source of income for Chevron investors.
The contract with Microsoft functions as a two-decade take-or-pay agreement, which provides a more predictable revenue stream than traditional oil and gas sales.
Chevron's president of New Energies, Jeff Gustavson, has stated that the company is scouting similar projects in various regions.