Chevron's (NYSE: CVX) dividend is its top financial priority, and it aims to increase its payout consistently. The oil giant raised its dividend per share by 8% in early 2024, its 37th straight year of growing the dividend (one of the longest streaks in the oil patch).
Here's a look at how much Chevron will likely pay in dividends this year.
Chevron's dividend continues to rise
The oil company paid a whopping $11.3 billion in dividends last year (up 3% from 2022). That was part of a record $26.3 billion in cash it returned to shareholders. (It also repurchased $14.9 billion in shares.) Chevron's share repurchase program is why its total dividend outlay was only up 3%, even though its per-share payment rose 6%.
Chevron will likely pay even more dividends this year. With its per-share payout rising 8%, it would pay about $12.2 billion in dividends in 2024 if it didn't repurchase any shares. However, it repurchased $3 billion of stock in the first quarter (a $12 billion annualized pace). Meanwhile, its first-quarter dividend outlay was $3 billion ($12 billion annualized).
While share repurchases will likely weigh on Chevron's total dividend outlay this year, there's a potentially meaningful upside catalyst: Its pending acquisition of Hess, which it agreed to buy last year for $53 billion in stock. Chevron would issue 317 million new shares to Hess shareholders (increasing its outstanding shares and dividend outlay).
The companies initially expected to close the acquisition in the first half of 2024. However, a dispute by rival Exxon and Chinese oil company CNOOC over Hess' stake in their lucrative project in Guyanacould delay the deal's closing (potentially to the end of the year) or scuttle the transaction.
A big-time oil dividend stock
Chevron is one of the top dividend payers in the oil patch. It currently offers a high yield (4%) and has an excellent record of increasing its payout. Those features make Chevron a great stock for investors seeking an attractive and steadily rising dividend.
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Matt DiLallo has positions in Chevron. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.
