A stalwart of the energy sector, Chevron boasts an impressive track record of delivering value to its shareholders. As the only energy company in the prestigious Dow Jones Industrial Average, it’s no surprise that investors are drawn to its attractive 4.4% dividend yield, which has been consistently increasing for an impressive 37 years.
Currently, Chevron distributes $1.63 per share on a quarterly basis, with the most recent payment made on September 10, 2024. For investors holding 100 shares, that translates to a tidy $163 dividend payment. Notably, the company has been steadily increasing its dividend payout, with an 8% hike earlier this year, following 6% increases in both 2023 and 2022. In fact, since 2008, Chevron’s dividend has grown at a compound annual rate of 6%, underscoring its commitment to rewarding shareholders.
The company’s ability to maintain this impressive dividend growth is underpinned by its robust financial performance. Between 2021 and 2023, total revenue surged 27%, while earnings per share jumped an impressive 40% over the same period. Furthermore, Chevron’s strong balance sheet and substantial free cash flow generation – totaling $18.1 billion over the trailing 12 months – provide ample cover for its annualized $11.6 billion cash dividend distribution.
Looking ahead, investors can expect Chevron to continue its tradition of annual dividend hikes, balancing its commitment to returning capital to shareholders with the need to invest in future growth initiatives. While no official announcement has been made, it’s likely that the company will declare its fourth-quarter dividend payout in December, with a potential dividend increase to follow in January 2025.
For income-focused investors seeking a reliable and growing dividend stream, Chevron remains an attractive option within a diversified portfolio. Its blue-chip status, coupled with its long history of delivering value to shareholders, makes it a compelling choice for those seeking stable returns over the long term.
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