What Sets Chevron Corporation Apart as a Dividend Powerhouse

Chevron Corporation (NYSE:CVX) is one of the Best Stocks to Buy for Dividends.

The company continues to follow a consistent set of financial priorities. These include delivering steady dividend growth to shareholders, making long-term investments, maintaining a strong balance sheet to manage exposure to commodity price fluctuations, and repurchasing shares throughout market cycles.

In 2024, Chevron Corporation (NYSE:CVX) returned $11.8 billion in dividends. Over the past 15 years, its dividend has grown at an average annual rate of 6.2%, which is nearly 12 times higher than the average of its LTIP peer group and approximately three-quarters of the return generated by the S&P Total Return Index. By the end of the year, the company’s dividend yield was nearly three and a half times greater than that of the S&P Total Return Index.

Chevron Corporation (NYSE:CVX) has steadily increased its dividend for 38 consecutive years, even during difficult periods like the financial crisis and the COVID-19 pandemic. This consistent commitment to shareholder returns makes it a strong option for investors seeking reliable passive income. Offering a forward dividend yield of 4.78%, the stock stands out, especially given the company’s careful financial management. Over the past five years, Chevron has maintained an average payout ratio of 68.4%, reflecting a disciplined and sustainable approach to dividends. The company currently offers a quarterly dividend of $1.71 per share.

While we acknowledge the potential of CVX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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