Like integrated rival Exxon, Chevron (CVX) is a profit-making machine. The former piece of Rockefeller’s Standard Oil practically has a license to mint money as oil prices and demand continue to rise.
Overall, Chevron’s size and global scope has allowed it avoid some of the production issues at its main rival — all while paying a higher dividend as well. Its current yield of 3.3% is larger than XOM’s.
Meanwhile, North America’s second largest integrated energy company has had an equally good commitment to rewarding shareholders via dividends. Chevron has managed to pay a steady dividend since 1912 and has increased its payouts for the last 26 consecutive years. The latest increase boosted that payout to $1 quarterly.
Yet, more gains could be in store. CVX features a ridiculously low payout ratio of just 31%, meaning there’s plenty of room for the oil stock to raise payouts even further. Analysts estimate that CVX could increase its dividend to $1.10 per quarter next year. There’s certainly evidence to suggest it will. Over the past 10 years, CVX has managed to increase its dividends by just under 10% a year.