Summary: Chevron’s (CVX, Financial) dividend was just increased a penny, but the overall yield is above that of the S&P 500 Index at 4.3%. This is better than many other companies within the energy sector as dividend cuts have been the norm. The quarterly dividend for the December payment will be $1.08 versus the prior year rate of $1.07 per share. Chevron remains a dividend aristocrat, paying and increasing dividend for 25 years. Based upon its above average yield, 3 year dividend growth rate of 5.3%, and excellent financial rating, CVX remains a solid energy stock candidate and a member of our Top 100 Dividend Stock List (see below).
The dividend will be paid at the new higher rate on December 12, 2016, to shareholders of record at close of business on November 18, 2016. Chevron Corp. is currently priced at $101.19. Listed in the table below are the quarterly dividend payments since 2010.
| Date | Quarterly Dividend |
| Nov. 18 | $1.08 |
| Aug. 17 | $1.07 |
| May 17 | $1.07 |
| Feb. 16 | $1.07 |
| Nov. 16, 2015 | $1.07 |
| Aug. 17, 2015 | $1.07 |
| May 15, 2015 | $1.07 |
| Feb. 12, 2015 | $1.07 |
| Nov. 14, 2014 | $1.07 |
| Aug. 15, 2014 | $1.07 |
| May 15, 2014 | $1.07 |
| Feb. 12, 2014 | $1 |
| Nov. 14, 2013 | $1 |
| Aug. 15, 2013 | $1 |
| May 15, 2013 | $1 |
| Feb. 13, 2013 | 90 cents |
| Nov. 14, 2012 | 90 cents |
| Aug. 15, 2012 | 90 cents |
| May 16, 2012 | 90 cents |
| Feb. 15, 2012 | 81 cents |
| Nov. 16, 2011 | 81 cents |
| Aug. 17, 2011 | 78 cents |
| May 17, 2011 | 78 cents |
| Feb. 14, 2011 | 72 cents |
| Nov. 16, 2010 | 72 cents |
| Aug. 17, 2010 | 72 cents |
| May 17, 2010 | 72 cents |
| Feb. 12, 2010 | 68 cents |
My analysis of Chevron is based upon our five key criteria, which include:
| Category | Value | Score |
| Dividend Yield | 4.25% | 54 |
| Dividend Growth (3-year avg.) | 5.3% | 303 |
| Forward P/E | 22.80 | 255 |
| S&P Financial Rating | A++ | 40 |
| Beta | 1.15 | 175 |
| Total Score | 827 |
Additional Information on P/S ratio and historical yield;
| % Yield | 3 Year Div. Growth Rate | 6 Year Div. Growth Rate | SPS 2016 | P/S Ratio | 10 yr P/S Low | 10 yr P/S High | 5 yr max Yield % | 5 yr lowest Yield % |
| 4.25% | 3.3% | 7.2% | 50.35 | 2.01 | 0.51 | 2.21 | 6.11% | 2.87% |
Positives
- Chevron’s dividend yield is above that of the Standard & Poor's 500 Index.
- Chevron maintains a three-year dividend growth rate of 5.3%.
- Chevron has paid out a dividend consecutively for the past 26 years.
- Chevron maintains a credit rating of A++. This is above investment grade.
Negatives
- Chevron is trading at a high price-sales (P/S) ratio. From a relative valuation perspective based upon P/S, Chevron is overvalued.
- Chevron maintains a beta of 1.15, higher than the average company.
Final thoughts
Chevron is a compelling high-yielding energy stock and member of the our Top 100 Dividend Stock List.
Disclosure: I am long Chevron.
Start a free seven-day trial of Premium Membership to GuruFocus.
