A Spot of Dividends: XOM & CVX

One rather despairs of finding sensible returns these days, doesn’t one? All this fuss over fleeting trends and ephemeral tech. But occasionally, a solid, dependable creature emerges from the gloom. ExxonMobil and Chevron, you see, are not exactly setting the world alight with innovation, but they are rather good at handing out dividends. And in this climate, that’s a virtue. The energy sector, naturally, has its moments of theatricality, but these two seem determined to remain stubbornly… profitable.

If one happens to have a modest five hundred dollars lying about – not required for the necessities, naturally, or for settling any frightfully embarrassing debts – these two might just be worth a glance. They aren’t going to make one a millionaire overnight, of course. But then, few things do.

What, Precisely, Do They Do?

Both Exxon and Chevron are, shall we say, comprehensively involved in the energy business. From extracting the stuff, to moving it about, to turning it into… well, everything. It’s a rather clever arrangement, actually. The various facets of the industry don’t all behave identically, which softens the blow when oil prices decide to have a tantrum. A bit like having several horses in the same race; one is bound to come in somewhere.

The truly impressive bit, though, is their consistency. ExxonMobil has been increasing its dividend every year for over forty years. Chevron, not to be outdone, boasts a streak exceeding thirty. Quite remarkable, really. Shell, BP, TotalEnergies… they simply can’t manage it. BP and Shell, in fact, had the appalling audacity to cut their dividends in 2020. Dreadful form.

And the yield? ExxonMobil offers a perfectly respectable 3%, while Chevron is even more generous at 4.1%. The S&P 500, by comparison, manages a paltry 1.1%. If one is seeking income, putting five hundred dollars into either of these giants would be… sensible. That will acquire approximately three shares of ExxonMobil and two of Chevron. Not a fortune, naturally, but a start.

The Real Secret, My Dear

But the true charm of ExxonMobil and Chevron lies not in their dividends, but in their balance sheets. Their debt-to-equity ratios – 0.16 and 0.22 respectively – are remarkably low. They have the financial leeway to weather the inevitable downturns, continuing to support their businesses and, crucially, their dividends. When oil prices recover – as they invariably do – they simply pay down the debt. It’s all frightfully tidy, really.

That’s why ExxonMobil and Chevron are, frankly, rather sensible buys today, and, indeed, most of the time. Chevron, however, currently offers a slightly more attractive income stream. For the more conservative investor – and let’s face it, most of us are – it might be the more… agreeable choice. Though one shouldn’t expect fireworks, of course. Just a steady, dependable return. And in these uncertain times, isn’t that quite enough?

2026-01-28 17:52

What, Precisely, Do They Do?

The Real Secret, My Dear

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