How To Earn $500 Per Month From Chevron Stock

Maximizing Monthly Income from Chevron Dividends

Looking to supplement your income with Chevron (NYSE:CVX) dividends? Aiming for $500 monthly? Here’s how much you need to invest.

Chevron Financial Snapshot

As of Jan 12, Chevron’s shares were trading at $146.99. The company, with a market cap of $278 billion experienced a 52-week range between $140.72 and $187.81.

Analyzing Chevron’s Dividend Payouts

During the third quarter of 2023, Chevron announced a dividend of $1.51 per share, a slight increase from $1.42 in the same period of 2022. The total dividends paid from January to September 2023 were $4.53, compared to $4.26 in the previous year.

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Investment Calculations for Desired Dividend Earnings

To consistently earn $500 per month from dividends, you’ll need to invest around $142,857, based on Chevron’s current dividend yield of 4.2%. This calculation is derived from dividing your annual dividend goal ($6,000) by the yield percentage. For a smaller goal of $200 monthly, the investment would be around $57,144.

Fluctuations in Dividend Yields

Let’s take a look at how dividend yield is impacted by stock price movements with a straightforward example. Imagine a stock that pays a consistent annual dividend of $3. When the stock is valued at $75, its dividend yield is 4% – this is simply $3 divided by $75. Now, if the market pushes the stock price up to $90, even though the dividend remains unchanged, the yield falls to about 3.33%, calculated as $3 divided by $90. In contrast, if the stock price were to decrease to $60, the yield would increase to 5% ($3 divided by $60). This scenario shows that dividend yield and stock prices have an inverse relationship, provided the dividend payout stays the same.