Chevron Increases Dividend for 38th Year, Projects $12.5B Cash Flow Growth by 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2026
0mins
Source: Fool
- Dividend Growth: Chevron has increased its dividend for the 38th consecutive year, currently boasting a yield of nearly 4.5%, significantly higher than the Dow's average of 2%, demonstrating its stability and growth capacity across multiple commodity cycles.
- Cash Flow Projections: Chevron expects to generate an additional $12.5 billion in free cash flow by 2026 at an average oil price of $70, driven by completed expansion projects and its merger with Hess, enhancing its ability to sustain dividend increases.
- Financial Strength: As of Q3, Chevron's net debt ratio stands at 15.1%, well below its target range of 20% to 25%, indicating robust financial health and investment flexibility.
- Market Outlook: Coca-Cola and Verizon also exhibit strong dividend growth capabilities, with Coca-Cola increasing dividends for 63 years and Verizon yielding nearly 7%, collectively forming a high-quality income stock portfolio within the Dow, ideal for passive income seekers.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 182.400
Low
158.00
Averages
176.95
High
206.00
Current: 182.400
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Tax Requirements: Under the new license, participating companies must pay oil and gas royalties or taxes to Venezuela or its state-run energy company, with these funds deposited into a U.S. Treasury account for foreign governments, ensuring transparency in fund allocation.
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