Jenny Harrington, CEO at Gilman Hill Asset Management, sold shares of Chevron and took shares of Pioneer Natural Resources as part of her strategy to focus on dividend yield. Harrington said on CNBC’s “Halftime Report” that even though Chevron has improved performance, its dividend yield has fallen below its portfolio dividend income target of 5% or more. Energy stocks pay a 3.6% dividend, while Pioneer yields 11.8%, according to FactSet. Investors began shedding their positions about a year ago, initially buying Pioneer shares instead of Chevron for new accounts that used the company’s dividend income strategy. Late last year, he sold his Chevron holdings held in tax-free accounts and individual retirement accounts. The move allows investors to reap big profits — as Chevron shares rise nearly 53% in 2022 — without being subject to capital gains taxes. Proceeds from the sale were transferred to Pioneer, he said. Harrington sold the Chevron shares in a taxable account at the start of 2023, giving him the rest of the year to offset the capital gains. He is in the process of replacing that position with Pioneer. “This is not, to me, a statement about the energy market as a whole,” Harrington said. “It is a claim to maintain the dividend yield of the portfolio. So, I have changed the 3% yield to 11% yield.” Harrington added that although Pioneer has variable results, with current oil prices and how the company pays dividends, he is comfortable with the trade. Joe Terranova, senior director for Virtus Investment Partners, which says it owns Pioneer stock, praised Harrington’s tactics. “It’s a good strategy,” he said. “That’s exactly what investors should be thinking about right now.” Gas and energy prices have fallen this year from 2022 highs. Terranova noted that investors are overall “overweight” on energy, and the current price decline may not be reversed unless there is a supply shock. Harrington disagreed with Terranova’s assessment, saying prices “could sit here for the rest of the year and the company would make money.” “They have capital discipline—they’ve got cash flow—and they’re paying,” he said.