Exxon Mobil Corp. (NYSE:XOM) shares commenced trading at $104.27 on November 29, boasting a market capitalization exceeding $414 billion. The stock’s performance over the past year has seen a 52-week low of $98.02 and a high of $120.07.
In the quarter spanning June to September, Exxon Mobil declared a dividend of $0.91 per share, surpassing the $0.88 per share for the corresponding period in 2022, as detailed in the company’s 10-Q filing on October 31. The cumulative dividend from January to September reached $2.73 per share, marking an increase from $2.64 per share in the previous year. During the initial nine months of 2023, dividend disbursements totaled $11.1 billion, a slight decrease of $70 million compared to the same period in the preceding year.
Earning $500 Per Month With Your Exxon Mobil Investment
For investors eyeing a monthly income of $500 or an annual sum of $6,000 from Exxon Mobil dividends, a targeted investment value of approximately $165,290 is required. Considering the current share price of $104.27, this would translate to owning roughly 1,585 shares of Exxon Mobil. For those aiming for a more modest monthly target of $100, the necessary investment value decreases to $33,058 or 317 shares.
Calculating Investment Value Using Dividend Yields
To estimate your investment value, two key parameters come into play: your desired annual income and the dividend yield of the stock. The dividend yield is determined by dividing the annual dividend payments by the market price of a stock.
If the goal is to earn $500 per month, the investment value would be $6,000 annually divided by the dividend yield of 3.63% ($6,000/0.0363 = $165,290). For a lower target of $100 per month or $1,200 per year, the calculation would be $1,200/0.0363 or $33,058.
Important Note: It’s crucial to acknowledge that the dividend yield can fluctuate due to changes in stock prices or alterations in dividend payments. The provided estimates assume a constant stock price. In the event of capital appreciation, the dividend yield decreases, given the inverse correlation between dividend yield and stock price.
To illustrate, let’s consider a numerical example: if a stock pays $2 as an annual dividend and is priced at $50, the dividend yield would be $2/$50 or 4%. If the stock price appreciates to $60, the dividend yield declines to 3.33% ($2/$60). Conversely, if the stock price drops to $40, the dividend yield rises to 5% ($2/$40).
