Want $1,000 in dividend income? Here’s how much you should invest in ExxonMobil stock.

Many, if not most, people believe that their current income is not enough. If you’re nearing or in retirement, a higher retirement income can help you pay your bills and sleep better at night. If you are far from retirement, a higher income could be used for a number of purposes, including saving for retirement.

Dividend-paying stocks are great for generating income – because they tend to send you cash regardless of what the economy does, and over time the stocks themselves will also increase in value (assuming the underlying companies are healthy and in growth). So let’s look at the energy giant ExxonMobil (XOM 1.39%)recently with a market value exceeding $500 billion.

ExxonMobil’s dividend is currently $0.95 per share each quarter, or $3.80 per share for the year. It has been raised roughly annually in recent years, at an average annual rate of 1.77% over the past five years, so future payments could be slightly higher. Let’s say you’re looking for $1,000 in dividends annually. We will assume an annual dividend of $3.80 for ExxonMobil. How many shares will you need to buy? Well, with its recent share price of $115, its dividend yield was 3.3%. So to receive $1,000 in dividends, he would need to buy 263 shares at that $115 — for a total investment of about $30,250.

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Here’s some good news: ExxonMobil shares appear reasonably valued at recent levels, with a forward price-to-earnings (P/E) ratio of 13.5 close to the five-year average of 12.9. The company also has promising growth prospects, largely due to innovation. For example, it transforms low-value energy inputs into higher-value resins, fibers, additives and battery materials.

ExxonMobil expects energy demand to grow and is heavily involved in a wide range of energy production, from oil and gas to hydrogen, and even produces lithium for batteries. Long-term investors may want to take a closer look at ExxonMobil.