CVX Dividend Type Payments

CHEVRON dividend

Although CVX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CHEVRON to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:35 PM ET):

CHEVRON (CVX)
Bid Ask Last Change Volume P/E Market Cap
118.10 118.12 118.11 +0.34 2.7M 18 235B

CVX Dividend-Like Income Using Covered Calls

With CVX at 118.11, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 3.54 1.0
5% 5.91 1.6
10% 11.81 3.2

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On CVX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 124.00 0.05 5 1.0 5.88 (5.0%)
Oct 26 126.00 0.12 12 1.0 7.88 (6.7%)
5% Yield On CVX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 123.00 0.09 5 1.8 4.88 (4.1%)
Oct 26 124.00 0.26 12 2.2 5.88 (5.0%)
10% Yield On CVX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 122.00 0.18 5 3.6 3.88 (3.3%)
Oct 26 123.00 0.40 12 3.3 4.88 (4.1%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.MU dividend   1.UVXY dividend
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3.EEM dividend 8.BAC dividend   3.NIO dividend
4.QQQ dividend 9.AMD dividend   4.PYX dividend
5.PBR dividend 10.XLF dividend   5.TLRY dividend

Want more examples? CVTI Dividend | CVY Dividend