Here's How Many Shares of Chevron You Should Own to Receive $10,000 in Annual Dividends

Chevron Corporation (CVX) has long been a cornerstone of dividend-focused investing, with a 38-year streak of annual dividend increases as of early 2025. For income-seeking investors aiming to generate a steady $10,000 per year from Chevron’s dividends, here’s a step-by-step breakdown of what it takes—and why the math makes sense.

The Dividend Math: Shares Needed for $10,000 Annual Income

As of May 2025, Chevron’s quarterly dividend stands at $1.71 per share, resulting in an annual dividend of $6.84 per share ($1.71 × 4). To receive $10,000 annually in dividends, investors would need:
[\text{Shares Required} = \frac{\$10,000}{\$6.84 \text{ per share}} \approx 1,461 \text{ shares}.]

The Investment Cost: Current Stock Price Matters

The total investment required depends on Chevron’s stock price. As of May 2025, let’s assume the stock trades at its trailing 12-month average price (you can check the current price here: ). If, for example, the stock is trading at $170 per share, the total investment would be:
[1,461 \text{ shares} × \$170 ≈ \$248,370.]

Why Chevron’s Dividends Are Sustainable

The calculation above isn’t just about arithmetic—it’s about sustainability. Chevron’s dividend is backed by its strong free cash flow and prudent capital allocation. Key data points:
- Payout Ratio: Chevron’s dividends accounted for 70.97% of its 2024 earnings, leaving ample room for growth.
- Free Cash Flow: In 2024, the company generated $15.3 billion in free cash flow, far exceeding the $11.8 billion paid in dividends. Chevron plans to boost free cash flow by an additional $10 billion by 2026.
- Dividend History: The $1.71 quarterly dividend marks Chevron’s 38th consecutive annual increase, reflecting its reliability.

Risk Factors to Consider

While Chevron’s dividend track record is robust, no investment is risk-free. Key considerations:
- Oil Price Volatility: Chevron’s earnings are tied to global energy prices, which can fluctuate sharply.
- Regulatory and Climate Risks: Transition to renewable energy could impact long-term demand for fossil fuels.
- Dividend Cuts: Though rare, Chevron has reduced dividends historically during severe downturns (e.g., the 1980s oil crash).

How to Track Chevron’s Dividend Growth

To monitor progress, investors can track Chevron’s dividend history and payout trends:

This visual will show the steady increases, reinforcing why Chevron is a top choice for dividend investors.

Conclusion: A Solid Case for Chevron’s Dividend Power

For investors aiming to generate $10,000 annually in dividends from Chevron, owning roughly 1,461 shares (assuming a $170 stock price) is the path forward. The math is straightforward, but the real strength lies in Chevron’s financial health:
- A 4.76% dividend yield (as of May 2025) offers a compelling income stream.
- Free cash flow dominance ensures dividends remain safe even during moderate oil price declines.
- A 38-year dividend growth streak underscores management’s commitment to rewarding shareholders.

While no dividend is guaranteed, Chevron’s balance sheet and operational resilience make it a rare energy stock capable of delivering both income and long-term growth. For those willing to ride out market volatility, Chevron remains a blue-chip dividend stalwart.

Investors should also consider reinvesting dividends to compound returns further—a strategy that could boost their income over time. As always, diversification and risk management are key. But for a chunk of your portfolio, Chevron’s dividend math checks out.