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Certainly, Chevron has the potential to grow, even with oil prices sitting at a four-year low.
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Increasing energy consumption and exports from the U.S. bode well for Kinder Morgan.
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While Kimberly-Clark has had a tough time lately, its stock is perhaps too undervalued to dismiss.
In 2025, we saw the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average hit new record highs. However, the energy sector only saw a modest 4.4% increase, lagging behind the S&P 500’s 16.4% rise, while consumer staples even dropped by 1.2%.
As we transition into 2026, some investors might want to reassess companies that have faced difficulties. Value stocks could offer a reliable source of passive income, especially firms like Chevron, Kinder Morgan, and Kimberly-Clark, which now stand out as potential buys for January 2026.
Chevron’s strategies will be key, particularly following its acquisition of Hess, as oil prices stabilize. Teaming up with Hess allows them access to significant resources in both North Dakota’s Bakken Basin and offshore Guyana.
Chevron recently reported plans for capital expenditures ranging from $18 billion to $19 billion in 2026—this is quite close to the lower end of their long-term budget goal of $18 billion to $21 billion. Notably, a significant portion of this budget, about $6 billion, will focus on regions such as the Permian, DJ, and Bakken basins, while $7 billion is earmarked for offshore investments, particularly in Guyana and the Gulf of Mexico.
Chevron’s emphasis on international offshore production and domestic operations could lead to further reductions in production costs, which would enhance profit margins.
Despite falling oil prices, the company has effectively cut costs to manage operating expenditures and long-term commitments, including dividends and buybacks. They anticipate maintaining a breakeven cost of under $50 per barrel of Brent crude oil through 2030.
With a streak of 38 consecutive years of dividend increases and a 4.5% yield, Chevron seems like a solid choice for both value and income investors in 2026.
On the other hand, Kinder Morgan plays a critical role in energy logistics, focusing on the infrastructure needed for transporting and storing hydrocarbons.
Despite the volatile oil and gas market, Kinder Morgan’s cash flow is relatively stable, with a significant portion of it—64%—coming from take-or-pay contracts. This means customers pay for reserved capacity whether or not they use it. Additionally, 26% of their income is fee-based and not reliant on commodity prices.
Investors have shown a keen interest in companies like Kinder Morgan, which saw a robust increase of 55.3% in 2024, albeit tapering off to just 0.3% growth in 2025. The rise of AI technologies is boosting demand for energy-intensive data centers, which looks promising for Kinder Morgan.
However, concerns about sustainability have arisen, pushing companies to consider alternative energy sources for powering these data centers. Nevertheless, Kinder Morgan appears optimistic about a steady increase in cash flow and dividends, fueled by rising domestic energy demand and increasing U.S. energy exports, particularly in liquefied natural gas (LNG).
With a forward P/E ratio below 20 and a dividend yield of 4.2%, Kinder Morgan looks appealing for passive income seekers in the upcoming year.
Their partnership with Kenvue, which spun off from Johnson & Johnson, aims to strengthen Kimberly-Clark’s standing in the paper products market.
However, both Kimberly-Clark and Kenvue are facing headwinds, as consumers tighten their spending and resist price increases. Kimberly-Clark’s earnings are under pressure, with both sales and margins declining. There’s a marked drop in operating margins as well as sales, now hitting their lowest in a decade.
Given these circumstances, investors may wonder what makes Kimberly-Clark a stock to watch in 2026. The answer likely lies in expectations and stock valuations.
Kimberly-Clark’s stock has plummeted, now sitting at just 13.2 times its forward earnings. That seems very low for a company with a strong history of paying and increasing dividends, which it has done for 53 consecutive years. The dropping stock price has pushed its yield up to an attractive 5%.
For investors who believe in the brand’s resilience, Kimberly-Clark presents a compelling buy opportunity, especially considering that the company could weather prolonged consumer spending challenges.
Ultimately, while Chevron, Kinder Morgan, and Kimberly-Clark may not be the most exciting growth stocks out there, they offer solid value and high dividends that might attract those looking to diversify their portfolios or bolster retirement income.
Before making any purchases of Chevron stock, potential investors should consider valuable insights from seasoned analysts who are recommending stocks with strong potential for returns.
This is indeed a perspective worth entertaining for those looking at the market closely.
