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.