Warren Buffett's company, Berkshire Hathaway (BRK.A -0.13%) (BRK.B -0.06%), owns nearly 50 stocks. Of those that trade on U.S. stock exchanges, 10 stocks have dividend yields that are at least double the S&P 500's level of 1.2%.

Chevron (CVX 1.50%) stands out as the clear leader. Here's why this oil stock is an unbeatable choice for Buffett followers eager to maximize their dividend income.

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Built to weather volatility

Chevron's dividend yields around 4.4% -- nearly 4 times the S&P 500. While high-yield stocks can carry added risk, Chevron sets itself apart with one of the industry's most durable business models. This unmatched stability puts its dividend on a solid foundation.

Oil prices often swing wildly, but Chevron's powerful business model makes it extremely resilient. Boasting the lowest breakeven level in its sector -- about $30 per barrel -- Chevron reliably generates more cash flow than peers, even when prices drop. Its integrated business combines top-tier production with downstream operations (refining and chemicals) that thrive when prices are low. As evidence, Chevron produced a robust $15 billion in free cash flow last year, easily covering its $11.8 billion in dividends despite some market challenges.

Chevron further fortifies its business against commodity price swings with one of the strongest balance sheets in the sector. Its net leverage ratio is currently below 15%, comfortably under its 20%-25% target range, and near the low end of its peer group (well below the S&P 500's average of more than 20%). The company uses its balance sheet strategically, borrowing money during periods of lower oil prices to fund long-term growth projects and repaying this debt when those projects come online during up markets.

Together, these standout features make Chevron's dividend an exceptionally dependable cornerstone investment for any income-focused portfolio.

Ample fuel to continue growing the payout

Chevron has demonstrated the durability of its dividend over the past several decades. The oil giant has increased its dividend for 38 straight years, which includes multiple periods of oil market volatility. It has also delivered peer-leading dividend growth over the past decade, a period during which several rivals reduced their dividends due to market turbulence.

The oil giant should have plenty of fuel to continue increasing its dividend in the future. Chevron expects to deliver a step change in its free cash flow in 2026. A combination of recently completed expansion projects, cost savings initiatives, and its merger with Hess should add $12.5 billion to its annual free cash flow next year. That assumes oil averages of around $70 per barrel, which is just below the current price point.

Chevron expects its free cash flow to continue rising into the 2030s. A major factor is Chevron's acquisition of Hess, which expands the company's portfolio by adding a significant growth engine from Hess' position offshore Guyana. The integration of Hess should drive long-term production and free-cash-flow growth to support Chevron's rising dividend.

The company aims to continue expanding its legacy oil and gas operations alongside its efforts to build several lower-carbon energy businesses, including its recent entry into the U.S. lithium sector. These investments should help drive continued growth in the coming years as the world slowly transitions to lower-carbon energy sources.

A lower risk, high-yielding dividend growth stock

Chevron pays out a rock-solid dividend. Its nearly unmatched stability in the sector empowers it to reliably reward investors with dividend income. Given its clear growth path, Chevron has the fuel to continue increasing its high-yielding payout.

All these strengths explain why Berkshire Hathaway counts Chevron among its top investments. With nearly $19 billion in Chevron shares -- its fifth-largest position, at 6.5% of the portfolio -- Buffett's company stands to reap substantial dividend income. Investors who follow Berkshire and buy Chevron can confidently expect it to collect its high-yielding payout for years to come.