How To Earn $500 A Month From Chevron Stock After Q3 Earnings Report

Chevron Corp CVX reported weaker-than-expected earnings for its third quarter on Friday.

Chevron reported quarterly total revenues and other income of $54.1 billion, beating the consensus of $51.44 billion. Adjusted EPS came in at $3.05, missing the consensus of $3.75.

With the buzz around Chevron following quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Chevron offers an annual dividend yield of 4.18%, which is a quarterly dividend amount of $1.51 per share ($6.04 a year).

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $143,340 or around 993 shares. For a more modest $100 per month or $1,200 per year, you would need $28,726 or around 199 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($6.04 in this case). So, $6,000 / 6.04= 993 ($500 per month), and $1,200 / 6.04 = 199 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock's current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

CVX Price Action: Shares of Chevron fell 6.7% to close at $144.35 on Friday.

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