Chevron and Exxon Have Rallied Nearly 60%. Here’s What $100,000 Pays in Dividends
After rallying nearly 60%, Chevron and Exxon still write quarterly checks to shareholders, but rising prices mean new buyers lock in far less income than those who bought in January. The gap between these two oil giants matters more than…
Retirement changes the job your portfolio has to do. Once the paycheck stops, the question shifts from how much your holdings are worth to how much cash they hand you every quarter. For retirees who want that cash from businesses with long records of raising it, two American oil companies stand out: one has increased its dividend for 44 consecutive years, the other for 39 consecutive years.
A $100,000 investment, with $50,000 placed in each of these two high-yield energy stocks, would produce $2,658.78 in annual passive income, or more than $2,600 a year at current forward yields.
One catch matters for anyone buying now. Both stocks have rallied hard, with Chevron (NYSE:CVX | CVX Price Prediction) up 59.11% year to date and Exxon Mobil (NYSE:XOM) up 57.71%. Rising prices compress yields, so new buyers lock in less income per dollar than holders who bought in January.
Exxon Mobil: 44 Straight Years of Raises
- Stock #2: Exxon Mobil
- Forward Yield: 2.30%
- Shares for $50,000: 268.69
- Annual Passive Income: ~$1,149.98
Exxon is an integrated supermajor covering upstream production in the Permian and Guyana, LNG projects, refining, chemicals, and specialty products. Its yield reflects a mature business that sends much of its commodity-driven cash back to owners. The quarterly payout rose from $0.95 in 2024 to $0.99, then $1.03, and the newly declared $1.07 pays on December 10, 2026, a 4% increase.
Coverage looks wide. Full-year 2025 EPS of $6.70 compared with roughly $4.12 in annual dividends, and the balance sheet carries debt-to-equity of just 0.17 with interest coverage of 56.3x. CEO Darren Woods framed the commitment bluntly: “From our perspective, we’re not going ever to cut our dividends, so any increases we add become an obligation that we’ve got to commit through to the future.” Exxon also plans to keep buybacks at $20 billion in 2027, assuming reasonable market conditions.
Chevron: Bigger Check, Thinner Cushion
- Stock #1: Chevron
- Forward Yield: 3.02%
- Shares for $50,000: 211.91
- Annual Passive Income: ~$1,508.79
Chevron produces oil and gas in the Permian, the Gulf of America, Guyana through its Hess acquisition, and Kazakhstan, and runs a large U.S. refining system. Its higher yield comes from a per-share payout that is larger relative to its stock price. The quarterly dividend rose from $1.63 in 2024 to $1.71 in 2025 and $1.78 in 2026, an annualized $7.12 per share.
Safety is adequate but less generous. Full-year 2025 EPS of $6.63 fell short of the current $7.12 annual rate, meaning weaker pricing already tested coverage once. Trailing diluted EPS has since recovered to $10.43, debt-to-equity stands at 0.22, and the completed Hess integration delivered $1.5 billion in annual run-rate synergies.
Oil Prices Decide How Safe These Checks Stay
Both payouts rest on crude. WTI traded at $103.37 per barrel on October 27, after swinging between $94.99 and $110.01 over the past month. The U.S. Energy Information Administration projects Brent below $70 per barrel in real 2025 dollars through 2030. A slide toward that level would pressure upstream earnings, and Chevron’s 2025 coverage gap shows how quickly the buffer can narrow.
Income Breakdown for a $100,000 Oil Portfolio
| Name | Forward Yield | Annual Dividend Income |
|---|---|---|
| Exxon Mobil | 2.30% | $1,149.98 |
| Chevron | 3.02% | $1,508.79 |
| Total | 2.66% | $2,658.78 |
Chevron Pays More, Exxon Looks Steadier
Combined, these 2 positions generate $2,658.78 in annual passive income from a $100,000 investment, with a blended yield of 2.66%. Exxon Mobil contributes $1,149.98, and Chevron adds $1,508.79.
Chevron delivers $358.81 more income a year on the same investment. Exxon looks steadier, with a longer raise run, lower leverage, and earnings that cleared its dividend well even in 2025. For retirees, the trade-off comes down to a bigger check today versus a wider margin of safety when oil turns lower.
Dividends that rise every year do quiet work over a long retirement. Each raise increases the income base without any new money invested, and reinvested payouts buy more shares that earn their own raises. Over a decade or two, that compounding can matter more than the starting yield.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
