Chevron’s Dividend Rises: Where Does Its Yield Stand after 4Q17?


Feb. 8 2018, Updated 9:01 a.m. ET

Series overview

So far in this series, we’ve looked at Chevron’s (CVX) 4Q17 earnings overview and segmental earnings dynamics. We also looked at Chevron’s stock performance after its earnings release as well as its price forecast range for the next seven calendar days.

We also reviewed the analysts’ ratings for CVX after its earnings release. In this final part of the series, we’ll look at Chevron’s dividend announcement.

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Chevron’s dividend rises

Chevron’s (CVX) dividend payments have risen in the past few years. In 1Q18, Chevon announced a dividend payment of $1.12 per share, representing an increase of $0.04 per share over 4Q17.

This trend also reflects 4.7% growth over Chevron’s dividend payment in 1Q16. The most recent dividend was announced on January 31, 2018, and is scheduled to be paid on March 12, 2018.

In the company’s 4Q17 earnings call, Chevron’s chairman and CEO, Michael Wirth stated, “Our number one financial priority is to maintain and grow the dividend when we can sustainably support the increase with cash flow and earnings. That’s why earlier this week we announced a dividend increase of $0.04 per share, putting us on track to make 2018 the 31st consecutive year of increased annual per share dividend payout.”

Chevron’s dividend yield

CVX’s current dividend yield stands at 3.6%, which fell from its 1Q16 dividend yield of 4.9%. The decline in yield is due to a steeper increase in Chevron’s stock price compared to its dividend in the stated period.

Peers’ dividend yields

BP’s (BP) dividend yield fell from 7.8% in 1Q16 to the current level of 5.8%. Royal Dutch Shell’s (RDS.A) dividend yield fell from 8.5% to 5.6%. ExxonMobil’s (XOM) dividend yield decreased from 3.8% in 1Q16 to the current level of 3.5%.

Among the global players, Total (TOT) and Statoil (STO) saw falling dividend yields from 6.0% and 6.6%, respectively, in 1Q16, to their current levels of 4.9% and 3.9%.


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