Chevron, a top Warren Buffett stock, offers a high-yielding dividend supported by strong financials.

From Yahoo Finance: 2025-05-18 15:17:00

Berkshire Hathaway collects over $800 million in dividend income from Chevron, which pays a high-yielding dividend supported by a low-cost business and strong financial profile. The oil giant has the fuel to keep growing its dividend, making it an attractive investment for passive income seekers. Chevron is one of Warren Buffett’s top holdings, with 6.8% ownership and a 4.9% dividend yield. The company’s dividend has grown for 38 consecutive years, highlighting its stability and potential for future growth. With a resilient business model and elite balance sheet, Chevron is well-positioned to continue increasing its dividend in the years to come. Chevron pays investors $1.71 per share in dividends each quarter, with a 4.9% yield that surpasses the S&P 500 average. The company’s low-cost portfolio and strong balance sheet provide a solid foundation for its dividend growth. Chevron expects to increase its oil and gas production by around 6% annually, generating significant free cash flow and supporting dividend growth. The company’s expansion into lower-carbon energy businesses further enhances its growth potential. Chevron’s acquisition of Hess and ongoing projects in key regions position it for continued production and free-cash-flow growth. The company’s diverse growth drivers and strategic initiatives make it a compelling investment for those seeking long-term dividend income.



Read more at Yahoo Finance: This Top Warren Buffett Stock Is a Super Dividend Stock to Buy for Passive Income