Chevron: What A Big Dividend Disappointment


  • 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




Dividend Increase



FY2021 $21.1 billion $10.98 6.0% $5.68/share
FY2022 $37.6 billion $19.58 6.3% $6.04/share

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.

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