What is the dividend payout for Chevron?

Chevron (CVX 2.46%) is recognized for its high-quality fundamentals as the only component of the energy sector of Dow Jones Industrial Average. Part of the appeal of this integrated oil and gas giant is the stock’s compelling 4.4% dividend yield, with an impressive 37-year history of annual payout growth.

Let’s explore how Chevron’s dividend has performed and what investors can expect going forward.

Chevron dividend rate

Chevron’s current quarterly dividend payment is $1.63 per share, with the most recent distribution being September 10, 2024. If you owned 100 shares of Chevron, you would have received a dividend payment of $163.

Earlier this year, the company raised its dividend by 8% from its previous quarterly rate of $1.52, and this follows a 6% increase in both 2023 and 2022. Since 2008, Chevron’s dividend payout has increased with a compound annual growth rate of 6%.

Steady growth in energy production with key investments in deepwater assets, including a strategic diversification into natural gas exposure, supported the return on capital policy. Financial results have been impressive in recent years. Between 2021 and 2023, total revenue grew by 27%, while earnings per share grew by an even stronger 40% during this period.

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Room for future dividend increases

Beyond any near-term price volatility in the energy market, Chevron’s strong balance sheet and approximately $18.1 billion in free cash flow generated over the past 12 months cover its annual cash dividend distribution of $11.6 billion. Chevron is expected to continue to increase its dividend rate annually as part of its long-standing stated financial priority, balancing the flexibility to invest in future growth.

Although no announcement has yet been made, Chevron’s fourth-quarter dividend payment will likely be made in December to shareholders of record by mid-November. There is also a good chance that Chevron will declare another dividend increase in January 2025, following a pattern in recent years.

To summarize, Chevron stock maintains its blue chip status and can work for income-focused investors in a diversified portfolio over the long term.