How to Earn $500 A Month From Occidental Petroleum Stock Ahead of Q3 Earnings

Occidental Petroleum Corp (NYSE:OXY) investors may soon be eyeing potential dividend gains once the company releases its third-quarter earnings report before the opening bell on Monday, Nov. 9.

Currently, Occidental Petroleum has an annual dividend yield of 1.99%, or a quarterly dividend of 28 cents per share ($1.12 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 about $301,921 or around 5,357 shares. For a more modest $100 per month or $1,200 per year, you would need $60,362 or around 1,071 shares.

To Calculate

Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.12 in this case). So, $6,000 / $1.12 = 5,357 shares ($500 per month), and $1,200 / $1.12 = 1,071 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as dividend payments and stock prices 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 trades 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 dividend payments can affect 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, the yield will too.

OXY Price Action

Occidental Petroleum shares fell 1.7% to close at $56.36 on Thursday.

Analysts expect the company to report quarterly earnings of $1.47 per share, up from 64 cents per share a year ago. The consensus estimate for Occidental Petroleum’s quarterly revenue is $6.89 billion. It reported $6.72 billion last year, according to Benzinga Pro.

On Oct. 27, Goldman Sachs analyst Neil Mehta maintained Occidental Petroleum with a Buy rating and raised the price target from $69 to $76.

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