SAN RAMON, Calif. – Chevron Corporation (NYSE: NYSE:CVX) has announced an increase in its quarterly dividend, a move that reflects the company's strong performance in the past year. The Board of Directors declared an 8 percent rise in the dividend to $1.63 per share, which is scheduled to be paid on March 11, 2024, to shareholders on record as of February 16, 2024.
Mike Wirth, Chevron’s chairman and chief executive officer, highlighted the company's achievements, stating, "In 2023, we returned more cash to shareholders and produced more oil and natural gas than any year in the company’s history." Chevron's cash returns to shareholders surpassed $26 billion, marking an 18 percent increase compared to the previous year's record. Additionally, the company's annual worldwide net oil-equivalent production reached new heights, exceeding 3.1 million barrels per day, with a notable 14 percent growth in the United States.
The energy giant has also expanded its portfolio with strategic acquisitions aimed at meeting the rising demand for energy. In the past year, Chevron completed the purchase of PDC Energy (NASDAQ:PDCE), Inc., acquired a majority interest in ACES Delta, LLC, and signed an agreement to take over Hess Corporation (NYSE:HES).
Chevron's decision to raise dividends aligns with its financial strategy of delivering value to its shareholders. The increase is based on the company's performance and does not necessarily indicate future dividend actions, which depend on the company's future earnings, financial condition, and capital requirements.
This announcement is based on a press release statement from Chevron Corporation.
InvestingPro Insights
Chevron Corporation's (NYSE: CVX) recent dividend increase marks the continuation of a remarkable streak, as the company has now raised its dividend for 36 consecutive years. This demonstrates Chevron's commitment to shareholder returns and its confidence in the company's financial strength. The increase in dividends is backed by a solid foundation of financial metrics, as reflected in the latest data from InvestingPro. Chevron's market capitalization stands at a robust $278.34 billion, and the company maintains an attractive price-to-earnings (P/E) ratio of 10.95, with a slight adjustment to 10.72 when considering the last twelve months as of Q3 2023.
InvestingPro Tips reveal that Chevron has been a consistent performer, with the stock generally trading with low price volatility, which may appeal to investors looking for stability in the turbulent energy sector. Moreover, analysts predict the company will be profitable this year, a sentiment supported by a dividend yield of 4.08% as of the latest data, highlighting the potential for reliable income generation for investors.
For investors looking to delve deeper into Chevron's financials and strategic positioning, InvestingPro offers additional tips, including insights on the company's debt levels, cash flow stability, and its standing within the Oil, Gas & Consumable Fuels industry. It's worth noting that there are 9 more InvestingPro Tips available for Chevron, providing a comprehensive analysis of the company's financial health and market position.
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