Chevron stands out as a leading dividend stock in the oil industry. The company prioritizes its dividend, aiming to consistently increase payouts. In early 2024, Chevron raised its dividend by 8%, marking its 37th consecutive year of growth in this area.
Last year, Chevron paid out $11.3 billion in dividends, up 3% from the previous year. This was part of a record $26.3 billion returned to shareholders, which also included $14.9 billion in share repurchases. Despite the 6% increase in per-share payments, the total dividend outlay only rose by 3% due to the share buyback program.
With a projected 8% increase in per-share payouts, Chevron is expected to pay around $12.2 billion in dividends in 2024, excluding share repurchases. However, the company repurchased $3 billion worth of stock in the first quarter, potentially impacting the total dividend outlay. Additionally, Chevron’s pending acquisition of Hess for $53 billion in stock could further impact its outstanding shares and dividend payments.
Despite potential challenges, Chevron remains a top dividend payer in the oil industry, offering a high yield of 4% and a strong track record of increasing payouts. This makes Chevron an attractive option for investors looking for a reliable and growing dividend stock.