All It Takes is $3,000 in Chevron to Generate Hundreds in Passive Income

Chevron (NYSE: CVX) is simply a dividend-paying juggernaut. The lipid elephantine precocious hiked its dividend outgo by 4%, extending its maturation streak to 39 consecutive years. The institution presently has a 3.9% dividend yield, much than 3 times the S&P 500's level (1.2%).

The high-yield dividend stock enables investors to make lots of passive income. All it takes is simply a $3,000 investment successful Chevron to make hundreds of dollars successful passive income successful the coming years.

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

Chevron accrued its quarterly dividend outgo by 4% this twelvemonth to $1.78 per stock ($7.12 annually). If you invested $3,000 successful Chevron, you could bargain 16 shares astatine the existent terms of astir $185 each. That would alteration you to cod $113.92 successful dividends implicit the adjacent twelvemonth ($28.48 each quarter). If Chevron simply maintained its existent dividend rate, you'd cod $569.60 successful dividend income implicit the adjacent 5 years.

However, barring a illness successful crude lipid prices, Chevron volition astir apt proceed expanding its dividend. It presently has the second-longest dividend maturation streak successful the lipid spot down ExxonMobil's 43 consecutive years. The institution has grown its payout astatine a peer-leading 7% compound yearly complaint implicit the past quarter-century.

If we presume a much humble dividend maturation complaint of astir 4% annually (matching this year's raise), here's however overmuch dividend income you could cod from Chevron implicit the adjacent 5 years:

Data source: Author.

Incidentally, that's a batch much income than you'd make from a $3,000 concern successful ExxonMobil.

While Chevron's humanities way grounds of expanding its dividend doesn't warrant it volition proceed to turn the payout, it shows the precedence it places connected dividends. However, past unsocial isn't the superior origin driving the presumption that Chevron volition proceed increasing its dividends. The company's fiscal illustration and outlook much than enactment this expectation.

Chevron generated $16.6 cardinal successful escaped currency travel past year, delivering industry-leading maturation contempt falling lipid prices. The lipid elephantine got a large boost from precocious completed large maturation projects and its acquisition of Hess. Chevron produced much than capable currency to screen its dividend payments ($12.1 cardinal successful 2025). That was portion of the $27.1 cardinal successful currency it returned to shareholders past year. It funded the quality with its fortress equilibrium sheet.