Chevron would never do something silly like that.
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Chevron may swear to never cut the dividend, but something else will have to be cut. Wait until they cut a little bit of your 401k match, your CIP bonus, your pension plan, but most immediately— wait until they cut you out of a job. Their stubbornness will cost you as and employee, one way or another. Simple finance.
Get this right. Wirth will be CEO for the next six years, before Gustafson takes over. Hell would have to freeze twice before Wirth cuts the dividend. He will ensure Gustafson vows to maintain and grow the dividend during his tenure in the same fashion Wirth promised Watson before the latter retired. Understand this: Chevron’s number priority is to maintain and grow the dividend; it has been as such for 34 years and it will remain so as long as it is a going concern.
Yes you’re right. I think Exxon cutting their company match is a clear sign of the times. I wouldn’t be surprised if Chevron takes some action to reduce overall cost of employment. Cut the company match to 4%, reduce the CIP to a .25. etc. We will have to wait and see. I think the executives have a stronger commitment to the dividend than to the 401(k) match. So maybe being a shareholder won’t be that bad after all. But who knows when the stock will get above 100 again.
I sold 1000 shares at $124 and a couple months later I bought back all ll that I could purchase at $90-100 per share in a few lots. It never climbed back up and I don't won't retire for another 14 years so instead of taking the loss (pandemic) I held on. I also have about $50k in Shell and Exxon in a brokerage account, and yes it does hurt. But life is a gamble in itself. Sometimes you win, sometimes you lose. My real estate holdings are also likely to drop in the coming months and years. But my chances of getting laid off are extremely low. And if need be I can skin a buck and run a trout line.....
I agree with @1ozm, but still holding 2538 shares of CVX? WHY? You were asleep at the wheel for a long time. You have little choice now, but to hold on to the shares. Good luck, hopefully you have other worthy holdings in your 401k to make up for the drag that CVX stock has on your portfolio.
As a shareholder (2538 shares) I am glad they think hard before cutting the dividend. As an employee (15 years) cutting the dividend to eliminate the need to take on more debt is appealing. But guess what? Its not our decision and our input is minimally valued. If things keep going this way an eventual dividend cut is quite likely. Time will tell and as for me, I will ride it out; for good or bad. Chevron will survive one way or another; and I will too.
You mean Chevron may be silly NOT to make a small cut or pause increases for a couple of years. If the hardships this industry is in does not turnaround soon, you’ll find Chevron in a regrettable position for not joining BP and many others in making some sort of cut to its dividend program right now.