How To Earn $500 A Month From Chevron Stock Ahead Of Hess Deal Closing
Chevron Corporation (NYSE: CVX) shares closed slightly higher on Thursday despite a decline in crude oil prices.
Benchmark U.S. crude oil for February delivery declined 33 cents to settle at $73.89 per barrel on Thursday.
The San Ramon, California-based company’s $53 billion all-stock deal for Hess (NYSE: HES) is scheduled for an early-2024 completion. Chevron and Hess recently received a request for additional information and documentary material from the Federal Trade Commission (FTC) in connection with the merger.
See Also: IEA Forecasts Slowdown In Oil Demand, Contrasts Positive Outlook By OPEC+
UBS analyst Josh Silverstein maintained Chevron with a Buy rating, lowering the price target from $194 to $185.
Chevron, during October, reported third-quarter total revenues and other income of $54.1 billion, beating the consensus of $51.44 billion.
With the recent buzz around Chevron, some investors may be eyeing potential gains from the company’s dividends. As of now, Chevron has a dividend yield of 4.01%, which is a quarterly dividend amount of $1.51 a share ($6.04 a year).
To figure out how to earn $500 monthly from Chevron dividends, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Chevron $6.04 dividend: $6,000 / $6.04 = 993 shares
So, an investor would need to own approximately $149,655 worth of Chevron, or 993 shares to generate a monthly dividend income of $500.Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $6.04 = 199 shares, or $29,991 to generate a monthly dividend income of $100.
Also Read: Top 5 Industrials Stocks That Are Ticking Portfolio Bombs
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
CVX Price Action: Shares of Chevron rose 0.3% to close at $150.71 on Thursday.
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