Chevron Could Raise Its Dividend Next Month - CVX Stock Looks Too Cheap
Chevron’s stock has drawn attention for its dividend potential and short-term trading opportunities. Analysts suggest the company could raise its dividend by 5% in early 2026. Meanwhile, traders are exploring short-term strategies involving out-of-the-money put options on the stock, which closed at $147.75 on December 19, 2025.
A short-term trading strategy involving shorting OTM puts on Chevron stock offers an immediate monthly yield of around 0.70%. If sustained over a year, this approach could generate an annual return of 8.4852%. The breakeven point for this trade sits at $139.01, roughly 5.92% below the stock’s closing price on December 19, 2025.
The delta ratio for Chevron’s stock stands at -19.39%, implying less than a 20% probability of the share price dropping to $140 within the next 34 days. This metric suggests limited downside risk for short-term put sellers. Looking ahead, Chevron may increase its dividend per share by 5% in January 2026, lifting it from $6.84 to $7.18. Should the dividend yield revert to its five-year average of 4.2168%, the stock price could climb to $170.27—a 15.2% rise from its December 2025 level. Historical dividend projections, based on the five-year average yield, would also tie future payouts directly to the prevailing share price at the time of calculation.
The combination of dividend growth and short-term option strategies presents multiple avenues for investors. A potential 5% dividend hike and a return to average yield levels could push Chevron’s stock toward $170.27. For traders, shorting OTM puts offers a steady income stream with a defined breakeven point below the current share price.
