Chevron increased its dividend by $0.03 per share to $0.68 for the third quarter, a 4.6% increase in its quarterly dividend.
In April, the US oil company left its second-quarter dividend unchanged, after making its annual payout in that quarter for the previous four years, Reuters reported.
The company did not indicate why the increase came in the third quarter.
According to its website, Chevron has no fixed dividend policy and its quarterly decision is based on factors that include "balancing cash flow, investment needs and the future financial strength of the corporation".
Energy prices could have played a part in the decision, as crude oil futures traded near $50 per barrel for much of April, but they have traded at more than $60 for much of the past two months, according to Reuters.
Due to a sharp drop in crude futures and the sector on Wednesday, Chevron shares fell 1.8% to $67.12, even though the dividend increase gave the stock a small nudge higher before the close of trading, Reuters reported.