Warren Buffett’s Berkshire Hathaway has invested in plenty of dividend stocks over the years. Dividend stocks remain popular among investors as they allow you to create a passive income stream at a low cost.
“Dividend stocks deliver regular payments to investors and can be an essential part of portfolios,” according to Charles Schwab’s investing education team.
This is precisely what Chevron is doing for Berkshire Hathaway right now.
Between Chevron’s rising payout and Berkshire’s massive stake, the arrangement now sends more than half a billion dollars into Buffett’s coffers every year.
Berkshire’s colossal Chevron dividend payday
Berkshire Hathaway owns 84,375,856 shares of Chevron. At Chevron’s current annual dividend of $7.12 per share, the stake generates roughly $601 million in cash every year, paid out in quarterly installments.
With CVX stock trading near $206 a share this week, Berkshire’s Chevron position is worth close to $17.3 billion.
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Berkshire trimmed part of its Chevron holding earlier in 2026, selling around $8 billion worth of stock.
Even after that sale, Chevron remains one of Buffett’s largest energy bets, sitting alongside Occidental Petroleum in Berkshire’s portfolio.
Chevron is a Dividend Aristocrat
Chevron has raised its dividend for 39 straight years, growing the payout at roughly a 6% compound annual rate over the past 15 years, Chevron chairman and CEO Mike Wirth said at the company’s annual strategic conference.
Wirth told analysts:
“We increased our dividend during COVID when some of our peers cut their dividends.”
The CEO pointed to the dividend streak as proof of the company’s commitment to steady payouts through market cycles.
Related: BofA just turned on Exxon in favor of Chevron
That track record earns Chevron a spot among the S&P 500 dividend aristocrats, a group of companies that have raised dividends for at least 25 consecutive years.
In the second quarter of 2026, Chevron reported $19.7 billion of cash flow from operations excluding working capital and $15.4 billion of adjusted free cash flow.
By comparison, quarterly dividend expense was about $3.5 billion, indicating a payout ratio of 20%.
Chevron also cut debt by more than $8 billion during the quarter and hit its $3 billion cost reduction target six months ahead of schedule.
CVX stock dividend ratios investors should know
- Annual dividend: $7.12 per share
- Dividend yield: 3.47%
- Payout ratio: 20% of FCF
- Consecutive years of dividend increases: 39
- 10-year dividend growth rate: 5.2%
- Payment frequency: quarterly, with the next payment due Sept. 10, 2026
What Wall Street thinks about CVX stock
Analysts remain mostly upbeat on Chevron even after its 2026 rally.
- Barclays analyst Betty Jiang kept an Overweight rating on the shares, telling clients that Chevron’s guidance underscores significant free cash flow expansion with room for more growth in 2027.
- Morgan Stanley analyst Devin McDermott has also raised his price target while keeping an Overweight rating on the stock.
- Carillon Tower Advisers, in its first quarter 2026 investor letter, said Chevron has significant exposure to spot commodity prices, a factor the firm sees as a key driver behind the stock’s performance this year.
Why dividend stocks matter for portfolios
Dividends have made up about one quarter of the S&P 500’s total returns over the past 50 years, according to research from American Century Investments.
The firm notes that dividend-paying stocks can also help diversify a portfolio and reduce volatility, particularly when share prices stall out for long stretches.
Schwab makes a similar case with numbers.
A hypothetical $10,000 investment in an S&P 500 index fund at the end of 1993 would have grown to more than $182,000 by the end of 2023 with dividends reinvested, compared with only $102,000 if those dividends were never reinvested.
That is the math working in Chevron’s favor.
A $601 million yearly dividend check will not move the needle much for a conglomerate the size of Berkshire Hathaway.
But it explains why a longtime dividend grower like Chevron still earns a spot in some of the most selective portfolios on Wall Street, including Buffett’s own.
Related: How much to invest in AT&T stock for $1,000 in annual dividends
