Chevron vs. ExxonMobil: Which Oil Dividend Giant Is the Better Buy for Income Investors?

Chevron (NYSE: CVX) and ExxonMobil (NYSE: XOM) hint their roots backmost to the 1800s. At 1 time, they were portion of John D. Rockefeller's Standard Oil. Aside from their longevity, some are among the largest vigor companies successful the world.

But which 1 provides the amended concern for long-term, dividend-seeking investors? It's clip to analyse each 1 to marque the determination.

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Chevron is an integrated vigor institution with upstream and downstream operations. Upstream includes searching for, developing, and producing crude lipid and earthy gas, portion downstream operations encompass refining and selling crude oil.

Its 2025 adjusted net per stock fell 27.5% to $7.29, undoubtedly wounded by weaker commodity prices. Brent crude lipid averaged $69 a tube past year, down from $81 successful 2024, but it has accrued since the extremity of the year.

Chevron acquired Hess successful July, paying a hefty $53 cardinal terms tag. The woody expands the company's geographic reserves successful Guyana and the U.S. Bakken, portion besides allowing Chevron to execute greater economies of standard and efficiencies.

Management besides expects the woody to assistance summation escaped currency travel (FCF), oregon operating currency travel little superior expenditures. Last year, it produced FCF of $16.6 billion. That gave it plentifulness of cushion to wage the $12.8 cardinal successful dividends.

In January, Chevron's committee of directors announced that it would rise March's quarterly dividend by implicit 4% to $1.78 a share. That makes it 39 consecutive years with a dividend increase. At the caller rate, Chevron's banal has a 3.9% dividend yield. That dwarfs the S&P 500 index's 1.2% yield.

ExxonMobil explores and produces crude lipid and earthy gas. It besides generates gross from selling and transporting these commodities, chemic products, and specialty products. Its 2025 net per share, adjusted for definite items, came successful astatine $6.99, down from $7.79 a twelvemonth ago. But the company's results are delicate to commodity prices. With the terms of crude lipid up this year, ExxonMobil could person a amended twelvemonth if that's sustained.

Meanwhile, the institution produces plentifulness of escaped currency flow, oregon operating currency travel little superior expenditures. On this basis, it generated FCF of $23.6 billion, which is much blimpish than the company's $26.1 cardinal figure, which subtracts different investments and adds items similar plus sales. Even utilizing the little figure, that provided the institution plentifulness of cushion to wage the $17.2 cardinal successful dividends.