HDV Dividend Engine Powered by Energy Giants Exxon Mobil, Chevron
The iShares Core High Dividend ETF (NYSEARCA:HDV) relies heavily on two sectors to fund its payout, with energy and pharma names accounting for 25.96% of net assets.
Exxon Mobil (XOM), Chevron (CVX), Johnson & Johnson (JNJ), and AbbVie (ABBV) are the top four holdings in HDV, offering a combined yield of roughly 3%. To assess the safety of these dividend payments, an analysis of each company's financials is necessary.
Exxon Mobil boasts an 'industry-leading balance sheet' with a net Debt to EBITDA ratio of 56.28x and interest coverage of 56.28x. CEO Darren Woods highlighted this flexibility in recent statements.
Chevron, on the other hand, has seen a significant increase in free cash flow following its acquisition of Hess, reaching $18.10 billion in Q2 2026. The company's net Debt to EBITDA ratio stands at 1.08x, and interest coverage is 13.70x.
Johnson & Johnson, the 'Dividend King', has earned its reputation with 64 consecutive annual raises and an AAA credit rating. With an earnings payout ratio of 60.16%, JNJ leaves itself a real cushion against potential downturns.
AbbVie's immunology handoff is replacing Humira faster than expected, bringing in combined revenue of $8.04 billion in Q2 2026. However, the company's net Debt to EBITDA ratio stands at 2.26x, and negative book equity from the Allergan deal raises cautionary flags.
The setup for HDV's income engine appears durable as long as crude prices remain above $79/b in 2027 and AbbVie's immunology handoff holds together.