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

Chevron Corporation -0.01% Post
 Chevron Corporation CVX 155.43 155.15 -0.01% -0.18% Post

Chevron Corp (NYSE: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.

Read This: Jim Cramer Wants You To 'Stay Away' From This Energy Corporation: 'I've Got So Many Other Good Oil Companies'

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.

Check This Out: Insiders Buying Texas Capital Bancshares And 2 Other Stocks

Photo: Shutterstock