Chevron: What A Big Dividend Disappointment

Jan. 30, 2023 9:06 AM ETChevron Corporation (CVX)BYDDF, BYDDY, COP, FCX, XOM, TSLA297 Comments
Michael Fitzsimmons profile picture
Michael Fitzsimmons


  • Chevron generated record free cash flow of $37.6 billion last year (an estimated $19.58/share) - up a whopping $16.5 billion from the previous record $21.1 billion in 2021.
  • Despite the massive gain in free cash flow, Chevron decided to increase the quarterly dividend only 6.3%, to an annual rate of only $6.04/share.
  • For long term Chevron investors like myself, the relatively piddly dividend increase was a massive disappointment, especially in light of the $75 billion share buyback announcement.
  • My followers know I have long considered Chevron the best integrated international major on the planet. Operationally it arguably still is.
  • However, the company's decision to massively over-emphasize share buybacks is a major red-flag for investors moving forward.
Chevron Posts Near Record Profits, Exceeding Market Expectations

Mario Tama

Chevron's (NYSE:CVX) stock went on a roller-coaster ride last week after announcing a 6.5% increase in the quarterly dividend and a massive and open-ended $75 billion buyback plan. The announcement came after the market closed on Wednesday. Shares responded by gaping

This article was written by

Michael Fitzsimmons profile picture
Technology stocks, ETFs, portfolio strategy, renewable energy, and O&G companies. Primary goal is growing net-worth. I typically allocate a portion of my own portfolio and devote some of my SA articles to small and medium sized companies offering compelling risk/reward propositions. I am an Electronics Engineer, not a qualified investment advisor. While the information and data presented in my articles are obtained from company documents and/or sources believed to be reliable, they have not been independently verified. Therefore, I cannot guarantee its accuracy. I advise investors conduct their own research and due-diligence and to consult a qualified investment advisor. I explicitly disclaim any liability that may arise from investment decisions you make based on my articles. Thanks for reading and I wish you much investment success!

Disclosure: I/we have a beneficial long position in the shares of CVX, COP, FCX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.

Recommended For You

Comments (297)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.