Will Exxon and Chevron Cut Their Dividends?

The global oil market is in a state of disarray thanks to multiple factors, most notably the impact of COVID-19. That's sent the energy sector reeling, with bankruptcies, spending cuts, and cost containment efforts all viable avenues for companies looking to get through this historically difficult period. Material dividend cuts are also starting to take shape at companies like Royal Dutch Shell (NYSE: RDS.B) and Equinor that had long histories of reliably returning cash to investors.

It's only logical to question whether or not peers ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX) will be forced to do the same. Here are some key things to consider.

The first and most important thing to remember about dividend decisions is that, for the most part, they are entirely up to the board of directors. The management team clearly provides guidance on the matter, but whether or not to pay a dividend and how much to pay is at the discretion of the board.

Source Fool.com