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Tracking Chevron’s Dividend Yield

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Chevron’s dividend per share

In the earlier parts of this series, we examined Chevron’s (CVX) stock price, followed by its moving average trends. In the previous part, we estimated Chevron’s stock price forecast range based on its current implied volatility. Now, we’ll look at Chevron’s dividend yield trend. But first, let’s look at Chevron’s dividend payment in the current quarter.

Chevron’s dividend payments have risen in the past few years. In the current quarter, Chevron paid a dividend of $1.12 per share announced on April 25. Chevron’s second-quarter dividend payment represents 5% growth over the dividend paid in Q2 2016.

Chevron’s dividend yield

Chevron’s (CVX) current dividend yield stands at 3.6%, having fallen from 4.2% in Q2 2016. The fall in the yield is due to a rise in Chevron’s stock price in the period. From Q2 2016 to Q2 2018 so far, Chevron stock has surged 18%.

The rise in the stock price could be due to a rise in oil prices and better financials. From Q2 2016 to Q2 2018 so far, oil prices have risen, leading to better upstream earnings for the company. Also, with the start-up of mega upstream projects, Chevron is expected to witness a rise in hydrocarbon production.

In the first quarter, Chevron paid $2.1 billion in dividends. CVX sees share repurchases as its fourth priority. In its first-quarter earnings transcript, Pat Yarrington, Chevron’s vice president and CFO, said, “We do fundamentally believe that (buy backs) are our fourth priority and dividend growth is number one, putting cash back into the business is number two, the balance sheet is number three. Once we’ve satisfied those other commitments, (surplus cash) can be used for a share repurchase program.”

Peers’ dividend yields

BP’s (BP) dividend yield has fallen from 8.3% in Q2 2016 to the current level of 5.3%. Other global players Total (TOT) and Equinor’s (EQNR) dividend yields have slumped from 5.6% and 5.0%, respectively, in Q2 2016 to 4.9% and 3.5%, respectively. Plus, Royal Dutch Shell’s (RDS.A) dividend yield has declined from 7.5% to 5.6%.

However, ExxonMobil’s (XOM) dividend yield has increased from 3.4% in Q2 2016 to the current level of 4.1%.

In the next part of this series, we’ll review which institutions are buying or selling Chevron stock.

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