Chevron Cuts Debt by Over $8 Billion in Q2 2026, Sets Dividend Yield at 3.40%

Chevron's second-quarter earnings revealed significant improvements in its financials. The company reported $15.4 billion in adjusted free cash flow, a substantial increase that funded a debt paydown of over $8 billion.

This reduction in debt pushed Chevron's net debt to CFFO ratio down to 0.6 times, strengthening its balance sheet and financial flexibility, according to CFO Eimear Bonner. The quarterly dividend stands at $1.78 per share, up from $1.63 two years earlier.

The company's payout ratio swung from a high of 159.55% in the first quarter of 2026 down to 29.03% by the second quarter, while its dividend yield sits at 3.40%, well under its 4.27% average. Chevron's mid-case model puts a $226 target on the stock by the end of 2030, implying a 5% total return and a 1% annualized rate from today's price.