Chevron Corp. (NYSE: CVX) said Thursday it has approved a new increase to its quarterly dividend, lifting the payout by roughly 4% as the energy major continues to prioritize shareholder returns despite softer free cash flow trends.

The company’s board raised the quarterly dividend to $1.78 per share, up from $1.71, bringing Chevron’s annual dividend to $7.12 per share. The new dividend will be payable on March 10 to shareholders of record as of February 17. The increase marks Chevron’s 39th consecutive year of dividend growth, preserving its status as a member of the S&P 500 Dividend Aristocrats Index, which includes companies that have raised dividends for at least 25 straight years.

Based on Chevron’s most recent closing price, the updated payout represents an annual yield of approximately 4.2%, maintaining the stock’s appeal to income-focused investors.Chevron shares have rallied sharply in recent weeks, rising about 20% since mid-December, as markets anticipated continued capital returns from the oil major. The dividend increase, however, came in slightly below some investor expectations, reflecting more conservative capital allocation amid uneven free cash flow performance.

While Chevron reported full-year operating cash flow growth, adjusted free cash flow declined modestly year over year following capital expenditures and other adjustments. The company’s fourth-quarter free cash flow was notably lower than the prior-year period, reflecting both spending levels and commodity price dynamics.

Even so, Chevron returned more than $27 billion to shareholders over the past year through a combination of dividends, share repurchases, and strategic equity purchases. Management has repeatedly emphasized that sustaining and growing the dividend remains a core financial priority. Chevron last raised its dividend by nearly 5% in early 2025, and executives have previously highlighted the company’s long-term record of steady dividend growth as a competitive advantage among global energy producers.

About Chevron Corporation

Chevron Corporation (NYSE: CVX) is a global integrated energy company engaged in oil and natural gas exploration, production, refining, chemicals, and energy technologies. Headquartered in Houston, Texas, Chevron operates across upstream and downstream markets worldwide and is one of the largest publicly traded energy companies by market capitalization.

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.