Chevron Corp (CVX) is expected to raise its dividend per share next month, potentially making the stock 15% undervalued based on its average yield. Shorting out-of-the-money puts could be a strategy to consider. CVX closed at $147.75 on Friday, well off its recent peak.

Based on an expected 5% dividend increase, CVX’s annual yield could rise to 4.86%. This is higher than its average yield over the last 5 years. Selling short OTM puts could provide income while waiting for a potential stock price increase. The strategy appears low risk with potential for significant returns.

Read more at Barchart: Chevron Could Raise Its Dividend Next Month