Chevron CEO vows to avoid first dividend cut since Great Depression

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

Chevron is pulling out all the stops to cope with the historic collapse in oil prices. The oil giant is slashing spending, scaling back its production ambitions and suspending its stock buyback program.

Facing $25 oil prices and a stock price that has been cut in half, America’s second-largest oil company is also considering laying off workers.

But there’s one thing Chevron (CVX) won’t touch: its coveted dividend. Even as other storied companies slash their payouts to brace for a looming recession, 140-year-old Chevron insists its dividend will survive the oil crash unscathed.

“Our financial priorities remain intact. And the dividend is at the top of that list of priorities,” Chevron CEO Michael Wirth told CNN Business on Tuesday. “Our shareholders depend on that dividend.”

Chevron, which traces its roots to 1879, hasn’t cut its dividend since 1934 during the Great Depression. In late January, Chevron boosted its dividend by 8%, marking the 33rd straight year of increases.

But the world is a very different place today. The coronavirus pandemic has shut down large parts of the global economy, setting the stage for a deep recession. Passenger planes have been grounded. Highways are empty. And factories have gone dark. All of that is causing an unprecedented decline in oil demand.

At the same time, Saudi Arabia and Russia are in the middle of an epic price war that is flooding the market with supply at the worst possible time.

Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

Joe Biden pays tribute to predecessor and ‘dear friend’on December 30, 2024 at 2:18 am

Biden praises Carter as "someone who embodied the most fundamental human values".Biden praises Carter as "someone who embodied the most fundamental human values".

Pitch invasions & violence: Jurgen Klopp & Eddie Howe ‘worried’ about safetyon May 20, 2022 at 10:42 am

BBC Sport recaps a week of pitch invasions and violence in football as managers express concerns for safety.

Samuel Alito: Top US judge mocks world leaders over abortion rulingon July 29, 2022 at 8:03 am

Samuel Alito dismisses Boris Johnson and others who condemned the move to restrict abortion.Image source, Getty ImagesA conservative member of the US Supreme Court...

Champions League: ‘Dogged Rangers fight way to place with big boys’on August 24, 2022 at 10:00 pm

PSV were profligate, but that will matter little to resolute Rangers as they look forward to Champions League groups, writes Tom English.PSV were profligate,...

Covid: Temporary courts to close and Western Australia’s borders reopenon March 3, 2022 at 7:47 am

Five things you need to know about the coronavirus pandemic this Thursday morning.Here are five things you need to know about the coronavirus pandemic...
Home of Science
Follow me