Chevron Edges Out ExxonMobil as Top Dividend Payer

The two largest American oil companies, Chevron and ExxonMobil, have long been considered reliable dividend payers. However, if you're looking for a stock to invest in for passive income, Chevron is currently the better option.

Chevron's dividend yield is nearly 1% higher than ExxonMobil's, with a current yield of 3.7%. This means that a $10,000 investment would pay out $370 annually compared to $270 from ExxonMobil.

Chevron has also increased its annual dividend at a greater rate than ExxonMobil over the past three years, five years, and ten years. While a high yield is great, owning a dividend stock that consistently increases its payout is even better, as it adds to the compound effect with no extra work needed.

However, ExxonMobil has a longer track record of consecutive dividend increases, with 43 years under its belt compared to Chevron's 39. Additionally, ExxonMobil's total returns have been higher over the past five years, at 218% compared to Chevron's 125%.