Chevron Stock Declines Despite Another Dividend Hike
Chevron stock is down Friday after the integrated energy company missed fourth-quarter profit expectations. Here's what you need to know.
Chevron (CVX) stock is down Friday after the integrated energy company beat revenue forecasts but came up short of profit expectations for its fourth quarter.
In the three months ending December 31, Chevron's revenue increased 10.7% year over year to $52.2 billion. Earnings per share (EPS) declined 17.9% from the year-ago period to $2.06.
"In 2024, we delivered record production, returned record cash to shareholders, and started up key growth projects," said Chevron CEO Mike Wirth in a statement. "We strengthened our portfolio and committed to reduce costs and maintain capital discipline, positioning us for significant free cash flow growth."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Chevron, which is seeking re-approval by the White House of a license that supports 200,000 barrels per day of production in Venezuela, is among the first U.S. companies to follow a Trump administration executive order renaming the Gulf of Mexico the "Gulf of America."
Chevron said worldwide net oil-equivalent production was up 7%, with U.S. output up 19%. "The company started up several key projects in the Gulf of America," Wirth said, "including the industry-first, high-pressure Anchor project."
The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $46.8 billion and earnings of $2.11 per share, according to CNBC.
Chevron also announced a 4.9% increase to its quarterly dividend. Its new quarterly dividend rate is $1.71 per share, and the first payment will come on March 10 to shareholders of record as of February 14.
Chevron is one of the best dividend stocks to buy for dependable dividend growth and this latest increase marks the 38th consecutive year the integrated energy company has raised its annual dividend payment.
Is Chevron stock a buy, sell or hold?
Wall Street is bullish on the energy stock, which has underperformed the S&P 500 over the trailing 12 months with a total return of about 9% vs 25% for the index. That performance gap has narrowed over the last three months, though, with CVX up 7% since October 31 and the index up 5%.
According to S&P Global Market Intelligence, the average analyst target price for the Dow Jones stock is $177.19, representing implied upside of more than 16% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm BofA Securities is one of those outfits with a Buy rating on CVX, which remains one of the best long-term investment stocks to buy.
"We rate CVX Buy and it is our top pick into 2025 despite the oil macro on rising free cash flow from projects and cost cutting, and getting Hess certainty," wrote BofA Securities analyst Jean Ann Salisbury in a January 10 note.
Salisbury added that BofA expects Chevron's deal for Hess to close, "giving CVX 30% stake in Guyana filling its end of the decade production gap."
The analyst has 12-month price target of $180 on CVX, implying upside of approximately 20% to current levels.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
The 'Go Live Your Life' Rule of Retirement SpendingThe 'guardrails approach' to retirement spending signals when you can spend more and when you need to rein it in, giving you greater flexibility in your post-work life.
-
Targa Resources, Take-Two Interactive, Boston Scientific: Why Experts Rate These Stocks at Strong BuyWall Street is highly bullish on these three high-quality stocks.
-
Targa Resources, Take-Two Interactive, Boston Scientific: Why Experts Rate These Stocks at Strong BuyWall Street is highly bullish on these three high-quality stocks.
-
Debunking Three Myths About Defined Outcome ETFs (aka Buffered ETFs)Defined outcome ETFs offer a middle ground between traditional equity and fixed-income investments, helping provide downside protection and upside participation.
-
This Is Why Judge Judy Says Details Are Important in Contracts: This Contract Had HolesA couple's disastrous experience with reclaimed wood flooring led to safety hazards and a lesson in the critical importance of detailed contracts.
-
US-China Trade Hopes Send Stocks to New Highs: Stock Market TodayApple and Microsoft are on track to join Nvidia in the $4 trillion market cap club.
-
A Lesson From the School of Rock (and a Financial Adviser) as the Markets Go Around and AroundIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
I'm a Financial Pro: This Is How You Can Guide Your Heirs Through the Great Wealth TransferFocus on creating a clear estate plan, communicating your wishes early to avoid family conflict, leaving an ethical will with your values and wisdom and preparing them practically and emotionally.
-
To Reap the Full Benefits of Tax-Loss Harvesting, Consider This Investment Strategist's StepsTax-loss harvesting can offer more advantages for investors than tax relief. Over the long term, it can potentially help you maintain a robust portfolio and build wealth.
-
Social Security Wisdom From a Financial Adviser Receiving Benefits HimselfYou don't know what you don't know, and with Social Security, that can be a costly problem for retirees — one that can last a lifetime.