How Chevron’s Dividend Yield Stacks Up with Peers


Nov. 20 2020, Updated 3:49 p.m. ET

Chevron’s dividend yield

Chevron (CVX) is the seventh dividend-yielding stock on our list of top eight stocks. The company’s market cap of around $223 billion puts it in the third slot in the list of the eight companies being discussed in this series.

Chevron’s dividend yield currently stands at 3.7%. In 1Q18, Chevron has announced a dividend of $1.12 per share, which was announced on January 31, 2018, and paid on March 12, 2018. Chevron has paid dividends consistently in the past three years. In fact, dividends have risen during the period. Three years back, Chevron made a dividend payment of $1.07 per share on March 10, 2015. Chevron’s stock has risen 11% in the past three years.

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Chevron trades at a forward PE of 18.7x, the highest among the eight integrated energy stocks. Chevron also trades at 6.6x its forward EV-to-EBITDA, above the peer average of 5.3x. This is the second stock of the top eight that has both its valuation matrices trading above the peer averages. The first one is ExxonMobil (XOM), discussed earlier in the series.

CVX is strengthening its financials with its exercise of cost reduction, capex optimization, and divestments. Going forward, CVX expects to improve its cash flows by focusing on its sturdy upstream and robust downstream portfolios. Thus, with CVX’s strategy in place and its focus on integrated growth, Chevron (CVX) could witness steep growth in earnings in 2018. For more on this, read, Is Chevron Set to Grow in 2018?

Chevron has higher a PE and a lower dividend yield, while BP (BP), Royal Dutch Shell (RDS.A), and Total (TOT) have higher dividend yields and lower PEs.

Move onto the next part to know who stands last in terms of dividend yield.


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