Forget Shell, Chevron Is a Better Dividend Stock
The energy sector was teetering in 2020 as a massive demand drop caused by the pandemic response left oil prices languishing. Some energy companies, including Royal Dutch Shell (NYSE: RDS.B), made huge business shifts, while others, like Chevron (NYSE: CVX), chose to stay the course. So far, Chevron's approach appears to have been the better option for dividend investors. And that's likely to remain the case for a long time to come.
Energy companies had been facing hard times before 2020, with low oil prices and heavy debt loads forcing most drillers to pull back on spending plans. When the pandemic hit things got even worse, with key U.S. oil benchmark West Texas Intermediate crude falling below zero at one point. Think about that for a second -- drillers were paying customers to take oil off their hands for a brief moment in time. There were unique factors involved and prices quickly bounced back, but it was a statement about how difficult the market was at the time.
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Source Fool.com
