Chevron Stock: Dividend Growth Potential in 2024

Chevron Corporation (CVX) is a San Ramon, California-based company that has been making headlines recently due to its $53 billion all-stock deal for Hess (HES). The deal is scheduled for an early-2024 completion, and Chevron has been receiving requests for additional information and documentary material from the Federal Trade Commission (FTC) in connection with the merger.

Despite a decline in crude oil prices, Chevron’s shares closed slightly higher on Thursday. This has led some investors to wonder about the potential for dividend growth from Chevron stock in 2024.

UBS analyst Josh Silverstein maintained Chevron with a Buy rating, lowering the price target from $194 to $185. Chevron 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, 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 can start by calculating the number of shares needed. We do this by dividing the yearly target of $6,000 ($500 x 12 months) by Chevron’s $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.

Alternatively, for a more conservative goal of $100 monthly ($1,200 annually), we can use the same calculation:

$1,200 / $6.04 = 199 shares

This means that an investor would need to own approximately $29,991 worth of Chevron, or 199 shares, to generate a monthly dividend income of $100.

It is essential to note that dividend yield can change on a rolling basis, as the dividend payment and 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.

In conclusion, Chevron stock has the potential for dividend growth in 2024. Investors interested in earning $500 or $100 monthly from Chevron dividends would need to own approximately $149,655 or $29,991 worth of Chevron stock, respectively. However, it is crucial to keep an eye on the stock price and dividend yield, as they can change over time.