Key Insights
-
Chevron is poised for growth even as oil prices remain close to four-year lows.
-
The increase in U.S. energy consumption and exports is promising for Kinder Morgan.
-
Despite struggling, Kimberly-Clark’s stock might be too attractive to overlook.
Looking to invest $1,000? Our analysts have shared insights into some top stock picks. Discover the best 10 stocks.
In 2025, major indexes like the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average hit new highs. However, while the S&P 500 rose by 16.4%, the energy sector only gained 4.4%, and consumer staples dipped by 1.2%.
As the year wraps up, it might be worth examining companies that have faced challenges. For instance, value stocks and high dividend yield options could be good for passive income. Chevron, Kinder Morgan, and Kimberly-Clark stand out as potential buys for January 2026.
Chevron’s Strategy and Shareholder Benefits
Investors are keen to see how Chevron utilizes its acquisition of Hess, especially with oil prices adjusting. Hess boasts valuable assets in North Dakota’s Bakken Basin and partnerships for offshore operations in Guyana.
In December, Chevron shared its 2026 projections, expecting capital investments of $18 to $19 billion, which is at the lower end of its typical range. A significant part of this budget will focus on domestic projects, including $6 billion allocated to key U.S. basins and $7 billion for offshore initiatives, particularly in Guyana and the Gulf of Mexico.
The company maintains a focus on offshore production globally, paired with solid domestic operations. This could lead to reduced production costs and improved profit margins.
Chevron has effectively cut costs and funded essential operations—even during oil price downturns. The company anticipates keeping its break-even point for capital spending and dividends under $50 per barrel through 2030.
With a solid history of raising dividends for 38 consecutive years and a yield of 4.5%, Chevron presents a compelling option for value and income investors in 2026.
Consider Kinder Morgan for Steady Income
Kinder Morgan, a midstream player, manages crucial energy infrastructure, including pipelines and terminals. The company’s cash flow remains stable, with a majority stemming from take-or-pay contracts that ensure revenue irrespective of actual throughput. A significant portion also arises from fee-based services not tied to commodity price fluctuations.
Although Kinder Morgan saw substantial growth of 55.3% in 2024, its performance leveled out in 2025, showing only slight improvement. The rising demand for data centers, partly driven by artificial intelligence (AI), could lead to positive developments in Kinder Morgan’s projects.
Even as many companies aim for sustainability, Kinder Morgan believes it can adapt and grow, especially with increasing domestic energy needs and exports, particularly in liquefied natural gas (LNG).
With a forward P/E ratio below 20 and a dividend yield of 4.2%, Kinder Morgan is quite an attractive option for those looking for passive income in the coming year.
Kimberly-Clark Faces Challenges but Holds Potential
Investors in Kimberly-Clark encountered a rough 2025, as the stock dropped 23%, putting it near a 12-year low entering 2026. There’s significant uncertainty for this consumer goods leader.
Following its acquisition of Kenview, spun off from Johnson & Johnson, Kimberly-Clark aims to align its focus on paper products with Kenview’s range of brands. However, both Kimberly-Clark and Kenview have faced struggles as consumers scale back spending and resist price hikes, impacting earnings, sales, and profit margins.
With Kimberly-Clark’s stock down substantially and trading at just 13.2 times anticipated earnings, it might seem depressingly cheap for a traditionally stable dividend stock, which boasts a history of increased dividends for 53 consecutive years. This decline has resulted in a substantial 5% yield.
For those who believe in the company’s resilience, Kimberly-Clark represents a solid option worth considering amid potential consumer spending pressures.
Wrapping Up with High-Yield Options
Chevron, Kinder Morgan, and Kimberly-Clark may not be the most glamorous growth stocks, but they are excellent value propositions with appealing dividend yields. They could be valuable for those aiming to bolster retirement income or to balance a growth-focused portfolio.
Is Now the Right Time to Buy Chevron?
Before making that investment, here are some things to think about:
An analyst team identified additional stock opportunities that do not include Chevron, potentially providing better returns in the coming years.
