Exxon Takes the Lead in Dividend Durability Among Oil Majors
Chevron and Exxon are two of the largest oil companies in the world, with long histories of raising their dividends. However, when crude prices fall, only one of them has a balance sheet strong enough to maintain its dividend payments without significant strain.
In terms of raw income, Chevron pays a quarterly dividend of $1.78 per share, or $7.12 annualized, for a yield of 3.07%. Exxon Mobil, on the other hand, pays $1.03 quarterly, or $4.12 annualized, for a yield of 2.57%.
However, when crude prices fall, Exxon's integrated refining and chemicals business cushions its earnings, giving it an advantage over Chevron in terms of durability through the cycle. Exxon also has lower leverage, with a net debt/EBITDA ratio of 0.548 compared to Chevron's 1.08.
Exxon's balance sheet is more robust due to its stronger cash coverage and lower debt/equity ratio. The company generated $17 billion in free cash flow in Q2 2026, returned over $9 billion to shareholders, and cut net debt by more than $7 billion.