Dividend Summary. XOM Total Long Term Debt (Quarterly) data by YCharts. CVX's dividend yield, history, payout ratio, proprietary DARS™ rating & much more! Facing $25 oil prices and a stock price that has been cut in half, America's second-largest oil company is also considering laying off workers. But Chevron’s profitability relies on an increase in oil prices. Chevron CEO: We're committed to protecting dividend. This isn't good or bad, it's just a fact. As a result, the stock is offering an all-time high dividend yield of 7.5%. A stock’s Dividend Uptrend rating is dependent on the company’s price-to-earnings (P/E) ratio to evaluate whether or not a stock’s dividend is likely to trend upward. Chevron is the only oil major with a Safe Dividend Safety Score, driven by the firm's strong balance sheet. High levels of leverage limit financial flexibility in tough times, because increasing leverage even more in a downturn isn't a desirable move. Clearly, paying a consistent and growing dividend is important to the boards of these to integrated energy giants. Chevron pays an annual dividend of $5.16 per share, with a dividend yield of 6.11%. If oil prices do not materially recover in 2021, a potential cut from Chevron’s dividend—a move that would mirror moves from its global oil competitors—could weigh on dividend growth next year. When Conoco Phillips cut its dividend earlier … The longer oil prices remain low, the more pressure on Chevron. All rights reserved. Anyone in this industry needs to be conscious of price discipline and capital discipline.". That last point is important here, because the top and bottom lines at Exxon and Chevron are clearly driven by the price of oil. On April 23r Alliance Data Systems cut its dividend 67% from 63 cents to 21 cents a share. Cumulative Growth of a $10,000 Investment in Stock Advisor, Will Exxon and Chevron Cut Their Dividends? However, growth will be stunted for the next few years. Chevron didn't. Because of that, Chevron estimated that it would be able to return $75 billion to $80 billion in cash to investors during that timeframe via its dividend and share repurchase program. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. Don't assume, however, that the boards of Exxon and Chevron won't make the hard call... 3. Chevron (NYSE: CVX ) is a dividend aristocrat that has grown its dividend … With that said, if oil prices stay in their current range for years then Chevron wouldeventually be unable to pay its dividend. Like many of its peers, Chevron is reining in spending, including in the Permian Basin, the West Texas epicenter of America's shale oil boom. In the near term it looks like both have the financial capacity and the will to support the dividends through what is a historically difficult energy market. … Chevron is a multinational energy company headquartered in San Ramon, Calif. Chevron (CVX) Declares $1.29 Quarterly Dividend; 7.7% Yield Exxon prepares spending, job cuts in last ditch move to save dividend Chevron (CVX) Declares $1.29 Quarterly Dividend; 5.7% Yield 30, 2020 9:09 AM ET About: Chevron Corporation (CVX) Aristofanis Papadatos Oil & gas, portfolio strategy, value, bonds Aristofanis Papadatos Summary Chevron has plunged 43% in about three months due to the fierce selloff of the entire energy sector that has been caused by the outbreak of coronavirus. The company has grown its dividend for the last 32 consecutive years and is increasing its dividend by an average of 6.10% each year. To shore up its balance sheet as oil prices plunged, Chevron drastically cut its capital expenses. That's sent the energy sector reeling, with bankruptcies, spending cuts, and cost containment efforts all viable avenues for companies looking to get through this historically difficult period. Cenovus yields 6.7%. If a stock is valued near, or slightly below the market average, research has shown that the market expects the stock’s dividend to increase. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. ", Saudi Arabia, the de facto leader of OPEC, responded by slashing prices and promising to ramp up production. The current headwinds (more on this below) are intense, and have led many energy companies to trim their dividends. That's exactly what both Chevron and Exxon have done. I find Chevron (CVX) a typical bulk company which has no brand or pricing power. Dividends are usually paid out of … No, Chevron and ExxonMobil aren’t the same company. ... Chevron has always put people at the center of the energy conversation. "Our shareholders depend on that dividend.". Although Gheit is anticipating Chevron to cut its dividend any day now, the company is likely to seek alternative solutions first. Dividend Volatility. But many of its peers, like Royal Dutch Shell, BP, Eni, and Equinor, have cut their dividends by 50% or more in 2020. Chevron has already announced a dividend increase for 2020. Shares had been dropping since February, and … Chevron Will Not Cut Its Dividend. Chevron CEO Mike Wirth discusses the oil company's financial management during the coronavirus pandemic, including reductions in … Will $50 Oil Keep the Bull Market Running in 2021? Long-term debt made up just 12% of the company's capital structure at the end of the first quarter. If either starts suggesting that there has been a fundamental change in the industry, you should probably begin to worry. However, that would likely mean that there's been a structural change in global energy demand. There is an important distinction here between Exxon and Chevron on the one hand and Shell and Equinor on the other. The company reiterated that its dividend is a priority, and that it's taking action to sustain it over the long term. 10 year yield history. But an even better example could be energy services company Helmerich & Payne (NYSE:HP). Chevron has plunged 43% in about three months due to the fierce selloff of the entire energy sector that has been caused by the outbreak of coronavirus. "Big Oils enter this downturn stronger and more resilient," the Goldman Sachs analysts wrote in the report to clients. Chevron Corp. became the latest major oil company to take an ax to its budget after halting its $5 billion-a-year share buyback and halving spending in the … Chevron was 1% higher in Thursday's session. "We can't control oil markets or what other countries choose to do. Why ExxonMobil, ConocoPhillips, and Chevron Stocks Hit a Gusher on Tuesday, Why ExxonMobil Stock Lost More Than 40% in 2020, ExxonMobil to Take $20 Billion in Upstream Charges in Q4, Copyright, Trademark and Patent Information. Chevron, which traces its roots to 1879, hasn't cut its dividend since 1934 during the Great Depression. One of the other ways a company can get cash to pay for things is to issue debt. If prices don’t climb and stabilize in the next year or two, there’s a much higher chance of Chevron cutting its dividend. Chevron is slashing its Permian spending by $2 billion, resulting in 20% less production there at the end of 2020 than previously expected. At the same time, Saudi Arabia and Russia are in the middle of an epic price war that is flooding the market with supply at the worst possible time. While Chevron has posted a loss of about $5 billion year to date, it has managed to … SAN RAMON, Calif., October 28, 2020 – The Board of Directors of Chevron Corporation (NYSE: CVX) declared a quarterly dividend of one dollar and twenty-nine cents ($1.29) per share, payable December 10, 2020, to all holders of common stock as shown on the transfer records of the Corporation at the close of business November 18, 2020. Because we understand that the well-being of people everywhere depends on energy. Although selling assets in the current market environment isn't likely to be easy, the key takeaway is that Exxon and Chevron can support their dividends in other ways. He added that Chevron has not "finalized" specific numbers around potential layoffs. Chevron is currently offering a nearly all-time high dividend yield of 7.0%. There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 2.9. Dividend Safety Rating: D Exxon Stock Dividend Outlook. In March, Exxon cut its 2016 capital spending by 25% to $23 billion. If you’re interested in learning more, please comment below. "Our financial priorities remain intact. It's only logical to question whether or not peers ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX) will be forced to do the same. As a result, readers should always check whether Chevron has been able to grow its dividends, or if the dividend might be cut. However, growth will be stunted for the next few years. With too much oil and too little demand, oil prices have plummeted to historic lows. But if the dip turns into something more, they will be forced to change those plans. CVX's most recent quarterly dividend payment was made to shareholders of record on Thursday, December 10. While Chevron’s dividend safety rating is low, I don’t necessarily expect a dividend cut this year. Chevron pays an annual dividend of $5.16 per share, with a dividend yield of 6.11%. Factset: FactSet Research Systems Inc.2018. 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