Exxon Edges Out Chevron as Top Oil Income Play for Retirees

For retirees seeking reliable oil income, Chevron and ExxonMobil are two top contenders. Both companies are Dividend Aristocrats, having raised their dividends for an impressive number of years.

Chevron pays a higher dividend yield at the moment, with a quarterly payout of $1.78 per share, or 3.45% annually. This makes it an attractive option for those prioritizing current income.

However, ExxonMobil has a longer history of annual dividend growth, with 43 consecutive years under its belt compared to Chevron's 39 years. This suggests that Exxon is better equipped to weather the next commodity bust and maintain its dividend payments.

In terms of valuation, ExxonMobil appears more attractive, with a lower price-to-earnings ratio (P/E) of 23 compared to Chevron's P/E of 32. Additionally, Exxon has a stronger balance sheet, with a debt-to-equity ratio of 0.17 and interest coverage of 56.3x.

Chevron, on the other hand, carries more debt, with a debt-to-equity ratio of 0.25 and interest coverage of 13.7x. While it has reduced its total debt in recent quarters, Exxon's financials are generally more robust.