Exxon Mobil Takes the Crown as More Durable Dividend Payor

Investors considering Chevron (CVX) and Exxon Mobil (XOM) as dividend-paying assets must decide which oil major can sustain its payments through a downturn. A comparison of their yields, balance sheets, and cash coverage suggests that Exxon Mobil is the more durable dividend choice.

Chevron's yield is higher at 3.07% compared to Exxon's 2.57%, but the latter's net debt/EBITDA ratio is significantly lower at 0.548 versus Chevron's 1.08. Additionally, Exxon has an interest coverage of 56x, far exceeding Chevron's 13.7x.

Exxon Mobil has a longer track record of maintaining its dividend, with a 43-year streak of annual increases. In contrast, Chevron has raised its dividend for 39 years but has not faced the same level of stress as Exxon in the past.