Occidental Petroleum Corporation (NYSE:OXY) will report third-quarter earnings results after the closing bell on Tuesday, November 12.
Analysts expect the Houston-based company to report quarterly profit of 74 cents per share. That’s down from $1.18 per share in the same period last year. Occidental Petroleum expects to report quarterly revenue of $7.23 billion. Last year, sales hovered around $7.21 billion, according to data from Benzinga Pro.
On November 8, JPMorgan analyst John Royall graded Occidental Petroleum with a Neutral and announced a $56 price target.
With the recent buzz surrounding Occidental Petroleum ahead of its quarterly earnings, some investors may also be eyeing potential gains from the company’s dividends. As of now, Occidental Petroleum offers an annual dividend yield of 1.73% — a quarterly dividend amount of 22 cents per share (88 cents per year).
To figure out how to make $500 monthly at Occidental Petroleum, we’ll start with the annual goal of $6,000 ($500 x 12 months).
We then take this amount and divide it by Occidental Petroleum’s $0.88 dividend: $6,000 / $0.88 = 6,818 shares.
So an investor would need to own about $346,423 worth of Occidental Petroleum, or 6,818 shares, to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 per month ($1,200 per year), we perform the same calculation: $1,200 / $0.88 = 1,364 shares, or $69,305 to generate a monthly dividend income of $100.
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Keep in mind that the dividend yield can be constantly changing because the dividend payout and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current share price. As the share price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and the current price is $50, the dividend yield would be 4%. However, if the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60).
Conversely, if the stock price falls to $40, the dividend yield would increase to 5% ($2/$40).
Additionally, the dividend payout itself can change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the share price remains the same. Likewise, if a company reduces its dividend payout, the dividend yield will fall.
OXY Price Action: Shares of Occidental Petroleum rose 0.6% to close at $50.81 on Monday.
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