Chevron vs. Occidental: Which Oil Major's Dividend Is Actually Safer?
If you look at the traditional measure of dividend safety, the payout ratio, you may get the wrong impression.
Overview
Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY) both operate in the energy industry. Chevron offers investors a well-above-market 3.5% yield as of this writing. Oxy's yield is 1.9%, which is still higher than the 1% or so you'd get from the S&P 500 index (SNPINDEX: ^GSPC), but clearly not as high as Chevron's yield. But is Oxy's lower yield a safer bet if dividend consistency is important to you? Here's what you need to know.
The geopolitical conflict in the Middle East has disrupted the energy market, leading to volatile oil and natural gas prices. Supply has been constrained, pushing up the prices of these commodities. That said, news flow and investor sentiment have led to material volatility in energy markets. Uncertainty is high.
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Originally published at www.fool.com.
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