Chevron Ranks Second-Last in Terms of Its Dividend Yield

In terms of its dividend yield, Chevron (CVX) is the fifth-best performer among the six stocks under review.

Maitali Ramkumar - Author

Dec. 4 2020, Updated 10:52 a.m. ET


Chevron’s dividend yield

In terms of its dividend yield, Chevron (CVX) is the fifth-best performer among the six stocks under review. Its market cap of ~$206 billion makes it the third-largest company among its peers.

Chevron’s dividend yield currently stands at 4.1%. In the current quarter, Chevron has paid a quarterly dividend of $1.12 per share. Chevron has paid dividends consistently for the past three years. Its dividend has risen in the period. Three years ago, Chevron made a quarterly dividend payment of $1.07 per share. Its stock price has risen 20% in the last three years.

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Chevron is trading at a forward PE of 12.8x, higher than the peer average. Chevron is also trading at a forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 4.9x, above the peer average of 4.8x.

Chevron is trading at a premium valuation, as it has strong financials and the highest growth prospects among its peers. Analysts expect the company’s EPS to rise 121% in 2018, much higher than the peer average of 69%. Chevron’s upstream earnings are expected to increase on higher volumes. Projects such as Gorgon and Wheatstone, along with its Permian assets, are ramping up production. The company saw record upstream volumes in the third quarter.

Chevron also has the second-best debt position in the industry, and its cash flow position has strengthened in the year. For more information, read Chevron’s Production Touches Record Highs: Where’s It Headed?

Chevron has a relatively high PE and a low dividend yield. ExxonMobil (XOM) and Suncor Energy (SU) have the same traits. Royal Dutch Shell (RDS.A), BP (BP), and Total (TOT), on the other hand, have lower PEs and higher dividend yields than their peers.

Move onto the next article to know which company is in last place in terms of its dividend yield.


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