Dividend Aristocrats In Focus Part 6: Chevron Corporation (CVX)

A handful of large, multi-national corporations dominate the energy industry. Only 2 are Dividend Aristocrats (S&P 500 stocks with 25+ years of rising dividends):

– Exxon Mobil Corporation (NYSE:XOM)

– Chevron Corporation (NYSE:CVX)

ExxonMobil is the largest publicly traded oil corporation based on its market cap.  You can see detailed analysis of ExxonMobil here. Chevron is the 2nd largest oil corporation in the United States based on its $191 billion market cap and $105 billion in revenue over the last 12 months.

Both of these companies were born out of the split-up of Standard Oil in 1911. This makes them in some ways ‘sister companies’.

Long histories of rising dividends is something else these 2 oil behemoths have in common. Chevron has increased its dividend payments for 28 consecutive years (with a very small 29th increase expected soon). Exxon Mobil Corporation (NYSE:XOM) has increased its dividend for 34 consecutive years. Chevron’s dividend history is shown below.

While Chevron’s dividend history is impressive, the past two years have not been kind to Chevron because of the huge decline in oil prices.  Despite these declines, Chevron has still outperformed the market over the last decade.

As an integrated major, Chevron has a diversified business model which is helping blunt the blow of low oil and gas prices.

And, it has several major projects set to ramp up going forward. These will help the company remain profitable and protect its high dividend yield of 4.2%.

Keep reading this article to learn more about the investment prospects of Chevron stock.