How To Earn $1,000 Per Month From Exxon Mobil Stock

Exxon Mobil Corp. XOM stock closed at $99.20, 0.28% higher at the end of the extended trading hours on Dec. 13. The stock price has dropped 7.13% on a year-to-date basis, and the current market cap is approximately $396.5 billion. The 52-week high price for Exxon was $120.07. The stock recorded its 52-week low price of $97.48 on Dec. 12. 

The company declared a dividend of $0.91 per share for the third quarter that ended in September compared to $0.88 for the same period of 2022. According to the company’s 10-Q filing on Oct. 31, the cumulative dividend from January to September was $2.73 per share compared to  $2.64 per share for the preceding year. The total dividend expense for the first nine months of 2023 was $11.1 billion.

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Earning $1,000 Per Month With Your Exxon Mobil Investment

If you want to earn $1,000 Per Month, or $12,000 annually, from Exxon Mobil dividends, your investment value should be roughly $330,579. At $99.20 a share, you will have around 3,333 shares of XOM. If you opt for a lower earnings target of $200 Per Month, your investment value reduces to $66,116 or 667 shares.

Calculating the estimated investment value using dividend yields: You can determine an approximate investment value using two variables. The first is your desired annual income and the second is the dividend yield of the stock. The dividend yield is calculated by dividing the annual dividend payments by the market price of a stock. 

If you want to earn $1,000 per month, your investment value will be $12,000 annually divided by the dividend yield of 3.63% ($12,000 / 0.0363 = $330,579). When the earnings expectation is $200 per month or $2,400 per year, the calculation will be $2,400 / 0.0363 or $66,116.

Important note when estimating your investment value: The dividend yield of a stock can change over time because of the movement in stock prices or a change in the dividend payments. The above estimates assume that the stock price is constant. If there is a capital appreciation, the dividend yield decreases — the dividend yield and the stock price have an inverse correlation. 

Take a numerical example for clarity. If a stock pays $2 as an annual dividend and is priced at $50, its dividend yield would be $2 / $50 or 4%. When the stock price appreciates to $60, the dividend yield declines to 3.33% ($2 / $60). When the stock price dips to $40, the dividend yield rises to 5% ($2 / $40).

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