Exxon is XLE’s largest holding at a weight of 16%. Other big names in XLE, the largest equity-based energy ETF by assets, have also boosted payouts. Schlumberger (NYSE: SLB), ConocoPhillips (NYSE: COP) and Occidental Petroleum (NYSE: OXY), among others, have all increased dividends this year. Those stocks combine for 14.6% of XLE’s weight. Kinder Morgan (NYSE: KMI), XLE’s fourth-largest holding at a weight of 4.4%, has announced three dividend increases just this year. [A big if for a big Energy ETF]
The standout, and not for positive reasons, in XLE’s dividend equation is Chevron (NYSE: CVX). Chevron, XLE’s second-largest holding at a weight of 12.4%, usually raises its dividend in April, around the same time as Exxon. Like Exxon, Chevron is a dividend aristocrat by way of a payout increase streak spanning 27 years. Chevron, also a Dow component, suspended its share buyback plan earlier this year, prompting some concern about the steadiness of the dividend increase streak.
Still, investors have pumped over $1.5 billion into XLE, one of the best totals among all sector ETFs. XLE has a trailing 12-month yield of 2.72%, or 37 basis points above where 10-year Treasury yields closed last Friday.
Energy Select Sector SPDR
