Question

2. Chevron Corp: What is their dividend policy? Explain:

2. Chevron Corp: What is their dividend policy? Explain:

Homework Answers

Answer #1

Although Chevron has no formal dividend policy, these are the features of its observed dividend policy :

  • Long history of paying stable, quarterly dividends
  • Balancing cash flow, investment needs (capital expenditure) and expected future financial strength of Chevron. Earnings that are paid out as dividends are not available to the company for investment. On the other side of the coin, investors desire regular dividend payments.
  • Balance the needs to investors who require larger dividend payouts
  • goal of Chevron is to provide superior returns to its shareholders. Returns can be in the form of price appreciation or dividends.
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