Wednesday, April 29, 2015

Exxon Raises, Chevron Disappoints

Hi Everyone,

Just thought I'd throw a quick post up since I haven't done one in a while.  With a lot of raises going on the past month with regards to dividends, there was an interesting situation today between XOM and CVX.

XOM raised the dividend 5.8% while CVX did not raise the dividend but was expected too.  It just goes to show how the fall in oil is affecting companies differently.  Exxons raise gives me roughly $5 more per year in dividends which I did not have to do anything to earn, just be invested in a great company!

I'm disappointed with CVX, but technically it still has a chance to keep the dividend streak alive if it raises its dividend within the next quarter or two so I will hold onto it for now.

What did you think about the XOM, CVX dividend dilemmas?  Are you going to sell CVX if you are a diehard dividend growth investor?

It will be interesting to see how these two companies play out over the coming months.

Thanks for stopping by!

11 comments:

  1. Though I don't own either name currently it's amazing that despite depressed oil prices these two dividend stalwarts can offer any sort of raise. I think CVX will raise this year. Thanks for sharing.

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    1. Good companies are always a ahead of the game. I picked these two companies because of their refining segments. With oil depressed, refining picks up the slack, thats why I bought CVX instead of COP a little while back. Just hope CVX raises the dividend soon.

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  2. I hold CVX and plan to add XOM as well. I am hoping CVX announces the div increase along with their results this morning. Let's see.

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    1. It appears XOM might be just a tad better than CVX with regards to raising the dividend. Both companies I'm sure will be fine in the long run, just a shame CVX didnt raise too

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  4. Recently bought XOM and several other oil majors, good to hear that they raised their dividend. Their website states "ExxonMobil’s dividend payments to shareholders have grown at an average annual rate of 6.4% over the last 32 years".

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    1. They almost made the average! 32 years is one heck of a streak, just hope it continues!

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  5. I am very long CVX, and recently added XOM. Yeah, the freeze is a bit annoying. But I read an interesting article on SeekingAlpha about CVX's dividend history: http://seekingalpha.com/article/3121366-chevron-hasnt-frozen-its-dividend-yet It basically says that CVX never really increased the dividend like clockwork, like a lot of other dividend growth companies do. CVX has gone anywhere from 2-8 quarters without an increase, depending on the timeframe and market. I trust CVX management knows what they're doing, and have faith CVX will increase the dividend in time. I'm not selling, and may actually add soon.

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    1. I read that article as well. I knew that CVX has a quirky dividend increase schedule, but as long as they increase it every year or so, I'm happy with it. CVX has a higher yield than XOM to begin with so even though it was great to see a raise from XOM, they still arent to CVX's level yet.

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