Chevron's dividend remains safe with 39 years of increases despite high payout ratio after Hess acquisition.

Chevron's recent acquisition of Hess assets raised its earnings payout ratio to about 103%, which seems high. However, strong operating cash flow and free cash flow comfortably cover dividend payments, supporting a 3.42% yield with 39 consecutive years of dividend increases. The company maintains a conservative balance sheet with low debt and strong interest coverage, ensuring dividend safety if oil prices stay above $70. Risks include potential pressure on dividends if oil prices fall to $55 for a prolonged period, but for now, Chevron's dividend remains reliable for income investors.