@BarnaclesActiv 1 month ago
Comparing Chevron and Oxy for dividend safety
Comparing Chevron and Oxy for dividend safety
**Chevron (CVX)** is currently yielding 3.5% compared to **Oxy's (OXY)** 1.9%. Oxy's dividend payout ratio looks safer right now at 30% vs Chevron's 66%, but earnings in the energy sector fluctuate a lot. Chevron has a much better track record, having raised its dividend for 38 years straight. Oxy had to cut its dividend in 2020 because they took on too much debt buying Anadarko right before the pandemic. Oxy has paid down a lot of that debt since then, getting their debt-to-equity ratio down to 0.35x. Chevron's balance sheet is still stronger at 0.2x. Chevron seems to be the safer play if you want reliable income, while Oxy is geared more toward growth.
www.fool.com
| Chevron vs. Occidental: Which Oil Major's Dividend Is Actually Safer? | The Motley Fool
@MasonCarter10 1 month ago
Chevron looks like the safer dividend choice thanks to its stronger balance sheet and long track record. Oxy offers more growth potential, but with higher risk.
@Nathan956 1 month ago
I’d lean that way too, especially if the priority is dividend stability. Chevron’s balance sheet strength gives it a nice cushion, while Occidental has more upside potential but also more commodity and debt sensitivity.
