Chevron Maintains $1.71 Dividend as Stock Approaches Ex-Dividend Date of November 18

Introduction: Chevron’s Dividend Strategy in a Volatile Energy Market

Chevron Corporation (NYSE: CVX) remains a cornerstone of the U.S. energy sector, known for its disciplined approach to capital allocation and long-standing commitment to shareholder returns. With a cash dividend of $1.71 per share set to go ex-dividend on November 18, 2025, Chevron continues its pattern of maintaining a stable and reliable dividend yield—a key factor in its appeal to income-focused investors.

The energy market leading into this ex-dividend date remains resilient, supported by strong global demand and Chevron’s robust financial performance. Recent earnings and operational data highlight a company in a strong position to sustain its dividend distribution despite macroeconomic headwinds.

Dividend Overview and Context

Chevron’s dividend strategy reflects its commitment to balancing reinvestment in high-return projects with returns to shareholders. The $1.71 cash dividend, announced alongside the latest earnings, remains unchanged from recent quarters and reinforces Chevron’s image as a reliable dividend payer.

The ex-dividend date of November 18 means the stock will trade without the dividend entitlement the following day. Historically, Chevron’s stock price has seen a small dip on the ex-dividend date, as the value of the dividend is subtracted from the stock price. However, given Chevron’s size and the market’s appetite for its stock, the impact is typically short-lived.

For investors, the key metric is the dividend yield. With Chevron’s recent stock price hovering near $135 per share and a $1.71 annual dividend, the yield sits at approximately 5.07%, making it one of the more attractive high-yield stocks in the S&P 500.

Backtest Analysis: How Chevron Bounces Back

A backtest of Chevron’s dividend behavior over 11 recent events shows a consistent and resilient price pattern. On average, the stock recovers its ex-dividend price drop within 3.11 days, and there's an 82% probability of full recovery within 15 days. This suggests that investors who hold Chevron through the ex-dividend date can expect a relatively quick rebound, minimizing the risk associated with dividend capture strategies.

The backtest assumed a simple strategy of purchasing the stock before the ex-dividend date, holding for the dividend, and selling after the price rebound. Reinvestment of dividends was not considered in this analysis, though historical trends indicate strong compounding potential.

Driver Analysis and Implications

Chevron’s ability to maintain a $1.71 dividend per share is underpinned by strong operational and financial performance. The latest quarterly report shows net income of $14.49 billion and earnings per share of $7.91, highlighting the company's profitability.

The company's payout ratio—calculated as the dividend per share divided by earnings per share—is approximately 21.6%. This low ratio reflects a conservative dividend policy, giving Chevron ample room to increase or sustain payouts even in a downturn.

On the cost side, Chevron’s operating expenses are well-managed, with marketing, selling, and general administrative expenses at $15.56 billion, or about 10.3% of total revenue. This efficiency, combined with high operating income of $21.45 billion, supports Chevron’s ability to fund dividends while investing in growth projects.

From a macro perspective, Chevron benefits from a global energy transition that still requires reliable oil and gas for the near to mid-term. Its long-term outlook, supported by strong cash flows and a disciplined capital program, positions it well for continued dividend sustainability.

Investment Strategies and Recommendations

For investors looking to capture Chevron’s dividend while managing risk, several strategies can be considered:

• Dividend Capture: Buy before the ex-dividend date and sell shortly after the price rebound, typically within a week. The backtest supports this as a low-risk, high-probability approach.

• Long-Term Holding: For those seeking consistent income, holding Chevron for the long-term remains a sound strategy. With a strong balance sheet and a conservative payout ratio, Chevron is well-positioned to increase its dividend over time.

• Diversified Income Portfolios: Chevron can serve as a key component in diversified income portfolios, particularly for investors seeking exposure to the energy sector with a reliable yield.

Conclusion & Outlook

Chevron’s $1.71 dividend, set to go ex-dividend on November 18, 2025, reflects the company’s strong financial position and disciplined capital strategy. With a history of quick price recoveries post-ex-dividend, Chevron remains a compelling option for both short-term dividend capture and long-term income-focused investing.

Looking ahead, investors will want to watch Chevron’s next earnings report and any potential updates to its capital allocation plan. With the energy sector poised for continued investment and demand, Chevron’s dividend strategy is likely to remain a key draw for income investors.