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Chevron: What Dividend Investors Should Expect After the Latest Boom

Investing.com Logo Investing.com • •By Gurufocus
Chevron: What Dividend Investors Should Expect After the Latest Boom

Chevron achieved record dividend increases of 6-8% annually from 2022-2024 driven by high oil prices and strong upstream cash flows. However, with oil prices expected to average $55-60/barrel in 2026 and only moderately recover to ~$75/barrel by 2030, investors should expect more modest dividend growth of approximately 5% annually through 2030. The company's strategic focus on higher-return assets like Guyana operations could support 7-8% increases long-term if production costs fall below $30/barrel.

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Chevron maintains a solid dividend history and strategic positioning in high-return assets like Guyana, but near-term dividend growth expectations are moderating from 6-8% to ~5% due to anticipated lower oil prices ($55-60/barrel in 2026). Long-term prospects remain positive if the company achieves its cost reduction targets, but near-term headwinds from oversupply and lower commodity prices create a balanced outlook.

Keywords
#dividend growth #oil prices #upstream business #Chevron strategy #cash flow #Guyana operations #Permian Basin #energy sector

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