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Chevron's $17B capital spend challenges dividend sustainability versus IBM's low-cost dividend model.

Company Fundamentals
25 Sep 2026
24/7 Wall Street
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Neutral
Chevron's $17B capital spend challenges dividend sustainability versus IBM's low-cost dividend model.

Chevron reported record oil production and strong earnings boosted by high crude prices, but it spends $17 billion annually on capital expenditures before paying dividends, reflecting the high cost of maintaining oil reserves. IBM, facing a decline in mainframe sales, relies more on software and keeps capital spending low, allowing it to fund dividends more easily despite rising interest expenses. Chevron offers higher yield tied to oil prices, while IBM's dividend appears more sustainable due to lower capital needs. Investors should watch IBM's free cash flow target and Chevron's new AI-related power deal with Microsoft for future dividend health.

Chevron shares trade at USD 203.24 on Pluang, with a dividend yield of 3.46% and a slight 1-day decline of 1.14%. The stock remains popular among buyers, with 89% of order activity favoring purchases. These figures are current as of Sep 25, 2026 20:21 WIB.

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