Chevron Stock Hands $123 Bil Back – Worth a Look?
In the last five years, Chevron (CVX) stock has returned an impressive $123 Bil back to its shareholders through cold, hard cash via dividends and buybacks. Let’s look at some numbers and compare how this payout power stacks up against the market’s biggest capital-return machines.
As it turns out, CVX stock has returned the 8th highest amount to shareholders in history.
| CVX | S&P Median | |
|---|---|---|
| Dividends | $67 Bil | $3.0 Bil |
| Share Repurchase | $57 Bil | $3.0 Bil |
| Total Returned | $123 Bil | $6.0 Bil |
| Total Returned as % of Current Market Cap | 31.4% | 18.8% |
Why should you care? Because dividends and share repurchases represent direct, tangible returns of capital to shareholders. They also signal management’s confidence in the company’s financial health and ability to generate sustainable cash flows. And there are more stocks like that. Here is a list of the top 10 companies ranked by total capital returned to shareholders via dividends and stock repurchases.
Top 10 Stocks By Total Shareholder Return
| Total Money Returned | As % Of Current Market Cap | via Dividends | via Share Repurchases | |
|---|---|---|---|---|
| AAPL | $604 Bil | 16.0% | $89 Bil | $515 Bil |
| GOOGL | $328 Bil | 9.1% | $17 Bil | $310 Bil |
| MSFT | $265 Bil | 9.7% | $121 Bil | $144 Bil |
| JPM | $197 Bil | 24.3% | $84 Bil | $113 Bil |
| XOM | $167 Bil | 24.5% | $94 Bil | $73 Bil |
| META | $165 Bil | 11.3% | $10 Bil | $155 Bil |
| BAC | $140 Bil | 38.7% | $53 Bil | $88 Bil |
| CVX | $123 Bil | 31.4% | $67 Bil | $57 Bil |
| WFC | $116 Bil | 46.4% | $27 Bil | $90 Bil |
| V | $99 Bil | 17.3% | $22 Bil | $77 Bil |
For full ranking, visit Buybacks & Dividends Ranking
What do you notice here? The total capital returned to shareholders as a % of the current market cap appears inversely proportional to growth prospects for reinvestments. Stocks like Meta (META) and Microsoft (MSFT) are growing much faster, in a more predictable way, compared to the others, but they have returned a much lower fraction of their market cap to shareholders.
That’s the flip side to high capital returns. Sure, they are attractive, but you have to ask yourself the question: Am I sacrificing growth and sound fundamentals? With that in mind, let’s look at some numbers for CVX. (see Buy or Sell Chevron Stock for more details)
Chevron Fundamentals
- Revenue Growth: -4.6% LTM and -7.6% last 3-year average.
- Cash Generation: Nearly 9.0% free cash flow margin and 9.0% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for CVX was -16.5%.
- Valuation: Chevron stock trades at a P/E multiple of 32.0
| CVX | S&P Median | |
|---|---|---|
| Sector | Energy | – |
| Industry | Integrated Oil & Gas | – |
| PE Ratio | 32.0 | 23.9 |
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| LTM* Revenue Growth | -4.6% | 6.8% |
| 3Y Average Annual Revenue Growth | -7.6% | 5.5% |
| Min Annual Revenue Growth Last 3Y | -16.5% | 0.4% |
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| LTM* Operating Margin | 9.0% | 18.6% |
| 3Y Average Operating Margin | 10.7% | 18.1% |
| LTM* Free Cash Flow Margin | 9.0% | 14.2% |
*LTM: Last Twelve Months
The table gives a good overview of what you get from CVX stock, but what about the risk?
CVX Historical Risk
CVX isn’t immune to downturns either. It fell nearly 30% in the Dot-Com crash and dropped over 43% during the Global Financial Crisis. The 2018 correction saw it slide about 21%, while the Covid pandemic hit it the hardest with a 55% plunge. Even the inflation shock caused a 25% dip. Strong fundamentals can cushion the blow, but in big sell-offs, CVX still takes a significant hit.
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read CVX Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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