Chevron declares higher dividend amid oil rally

Chevron Corp has declared a six percent increase in its quarterly dividends, the latest US oil and gas company to do so as soaring demand for fuel drives energy prices to new highs.

Chevron’s board of directors declared a quarterly dividend of US $1.42 per share, an increase of eight cents (0.08 cents) per share or approximately six percent, the company said in a statement late Wednesday. The dividend is payable March 10, 2022.

“This increase puts Chevron on track to make 2022 the 35th consecutive year with an increase in annual dividend payout per share,” the company said.

US oil prices jumped more than 50 percent last year on the back of global economic recovery from the coronavirus pandemic and geopolitical risks. Several energy companies have rushed to return more cash to shareholders through buybacks and dividends as a result.

Global oil prices touched $90 a barrel for the first time in seven years on Wednesday, with analysts on Wall Street estimating it could cross US $100 per barrel by mid-year.

Fueled by the oil rally and buoyed by the prospect of a strong quarterly financial results that’s due on Friday, shares of Chevron on Wednesday touched an all-time high intraday – trading as high as US $134.71, above the previous record of US $133.60 set in January 2018.