Chevron's Iraq Bet Isn't the Real Dividend Growth Story. Here's What Is.

Chevron's commitment to long-term thinking is the key to its impressive dividend growth, not any single investment. Despite the geopolitical conflict in the Middle East driving up energy prices, Chevron remains focused on the future, investing in Iraq and planning a pipeline to help avoid the Strait of Hormuz. What enables this long-term strategy is the company's strong financial position, as evidenced by its low debt-to-equity ratio of 0.2x.

Chevron's ability to take on debt during low energy prices and reduce leverage during recoveries has been crucial to its 38-year streak of annual dividend increases. While Chevron is a large and diverse energy company, the real dividend growth story lies in its long-term mindset and financial strength.