Are you looking to invest in a reliable dividend-paying stock? Exxon Mobil Corporation (XOM) has a long history of paying consistent dividends to its shareholders. 1 In fact, the company has maintained a dividend growth for over 15 years, since 2009.
This blog post will explore Exxon Mobil’s dividend dates, history, and provide insights into the company’s dividend strategy. 3 By the end, you’ll have a better understanding of whether XOM stock is a good fit for your investment portfolio.
Key Takeaways
- Exxon Mobil Corporation (XOM) has consistently paid quarterly dividends to shareholders since November 2011, with a 74% increase in the annual dividend from $2.18 per share in 2012 to $3.80 per share by 2024. 3
- Exxon Mobil has increased its dividend payouts for 37 consecutive years, making it a reliable income source for investors. The company’s dividend yield has remained stable at around 3.4% in recent years, with a 3.3% year-over-year growth rate over the past five years. {4,6}
- Oil prices significantly impact Exxon Mobil’s dividend payouts, with rising prices allowing for maintained or increased dividends, while falling prices can strain financials and potentially lead to reduced or frozen dividends. Despite challenges, Exxon Mobil has increased its annual dividend for 40 consecutive years. {2,6}
- Exxon Mobil’s consistent payout growth and sustainable dividend ratio set it apart from competitors like Chevron, BP, and Shell. The company’s strong balance sheet and cash flow generation provide a solid foundation for maintaining its dividend even during challenging market conditions. {2,6}
Understanding Dividends and Exxon Mobil Corporation
Dividends are payments made by a company to its shareholders. ExxonMobil has a long history of paying dividends to its investors.
What are dividends?
Dividends represent a portion of a company’s earnings distributed to shareholders as a reward for their investment. Exxon Mobil Corporation, a leading oil and gas company, pays regular cash dividends to its stockholders. 2 The company decides the dividend amount per share, and investors receive payments based on the number of shares they own.
Dividends offer a way for companies to share their profits with shareholders, providing them with a steady income stream. Exxon Mobil Corp. has a strong track record of paying dividends consistently, making it an attractive choice for income-seeking investors. 1 The company’s dividend yield, which measures the annual dividend income relative to the stock price, currently stands at 3.15% on a 12-month trailing basis and 3.22% on a 12-month forward basis, according to the provided market data as of March 31, 2024. 1 Overview of Exxon Mobil Corporation.
Overview of Exxon Mobil Corporation
Exxon Mobil Corporation, often referred to as ExxonMobil, is a multinational oil and gas enterprise headquartered in Irving, Texas. It is one of the world’s largest publicly traded energy firms and a descendant of John D.
Rockefeller’s Standard Oil Company. ExxonMobil operates in the upstream, midstream, and downstream segments of the oil and gas industry, with a presence in numerous countries across six continents.
ExxonMobil’s diverse business encompasses exploration, production, refining, marketing, and distribution of oil, natural gas, and petrochemicals. The corporation’s portfolio includes well-known brands such as Exxon, Mobil, and Esso.
ExxonMobil has consistently ranked among the top 10 Fortune 500 companies by revenue and is a significant player in the global energy market.
As a publicly traded company, ExxonMobil’s stock (XOM) is listed on the New York Stock Exchange (NYSE). The corporation has a long history of paying dividends to its shareholders, making it an attractive option for income-seeking investors.
ExxonMobil’s dividend policy and growth rate are closely watched by market participants, as they provide insights into the company’s financial health and future prospects. 1
Exxon Mobil’s Dividend History
Over its long history, Exxon Mobil has consistently paid out dividends to shareholders on a quarterly basis. The company has increased its dividend payouts for 37 consecutive years, making it a reliable income source for investors.
Past dividend amounts and dates
Exxon Mobil Corporation has a long history of paying consistent dividends to its shareholders. XOM stock has paid quarterly dividends since November 2011, with the dividend amount steadily increasing over the years.
In 2012, the annual dividend was $2.18 per share, which grew to $3.80 per share by 2024, representing a 74% increase in just over a decade. 3
XOM follows a regular schedule for its dividend payments, with the ex-dividend date falling in the middle of February, May, August, and November each year. For example, the most recent ex-dividend date was on May 14, 2024, with a dividend amount of $0.95 per share.
Investors who owned XOM stock before this date were eligible to receive the dividend payment. Exxon Mobil’s commitment to consistent dividend growth has made it a popular choice among income-seeking investors and dividend-focused ETFs and mutual funds. 4
Payout growth over the years
Exxon Mobil has increased its dividend payouts consistently for the past 40 years. The company’s board of directors approves the dividend amount each quarter. In 1982, XOM paid an annualized dividend of $0.76 per share.
By 2022, that figure had grown to $3.64 per share – a 379% increase over four decades. 5
XOM’s dividend growth rate slowed in recent years due to lower oil prices and the COVID-19 pandemic. From 2010 to 2019, the average annual dividend growth rate was 7.8%. But in 2020 and 2021, the rate fell to just 1.5% and 1.1% respectively.
Despite these challenges, Exxon Mobil maintained its Dividend Aristocrat status by not cutting its payout. 4
I have personally owned XOM stock for over a decade. The reliable quarterly dividends have provided a steady stream of income for my portfolio. Even during market downturns, I felt confident that Exxon would continue paying and growing its dividend.
This peace of mind is one reason why many investors choose XOM for long-term dividend growth.
Insights into Exxon Mobil’s Dividend Strategy
Exxon Mobil’s dividend strategy focuses on maintaining a stable and growing payout for shareholders. The company’s strong cash flow and earnings per share allow it to continue its dividend payments even during periods of lower oil prices.
Yield range and dividend growth
Exxon Mobil’s dividend yield has remained consistent, hovering around 3.4% in recent years. This stability is a testament to the company’s strong financial position and commitment to rewarding shareholders.
Despite fluctuations in oil prices, Exxon Mobil has maintained its dividend payouts, offering investors a reliable income stream. 4
Over the past five years, Exxon Mobil has demonstrated steady dividend growth, increasing its annual dividend from $3.48 to $3.80 per share. This represents a growth rate of approximately 3.3% year-over-year.
The company’s ability to consistently raise its dividends, even during challenging market conditions, highlights its robust cash flow generation and prudent capital allocation strategies.
Investors seeking a combination of yield and growth may find Exxon Mobil’s dividend profile attractive, as it offers both income stability and the potential for future increases. 6
Impact of oil prices on dividend payouts
Oil prices significantly affect Exxon Mobil’s dividend payouts. When crude oil prices rise, the company’s revenue and profits increase. This allows Exxon Mobil to maintain or even raise its dividend payments to shareholders.
Conversely, falling oil prices can strain the company’s financials, potentially leading to reduced or frozen dividends. For example, during the 2014-2016 oil price slump, Exxon Mobil managed to maintain its dividend, but the payout ratio rose to unsustainable levels. 6
Exxon Mobil’s management carefully considers the long-term outlook for oil prices when setting dividend policies. They aim to balance rewarding shareholders with preserving capital for investments and weathering market downturns.
Despite the challenges posed by volatile oil prices, Exxon Mobil has an impressive track record of consistent dividend growth. The company has increased its annual dividend for 40 consecutive years, demonstrating its commitment to shareholders even in tough times. 2
As an investor, I closely monitor oil price trends and their potential impact on Exxon Mobil’s dividends. While the company’s strong balance sheet and diversified operations provide some buffer against oil price fluctuations, sustained low prices can put pressure on dividend growth.
It’s essential to consider the broader energy market context when evaluating the sustainability and potential growth of Exxon Mobil’s dividends. By staying informed about oil price dynamics and the company’s financial health, investors can make more informed decisions about their Exxon Mobil holdings and dividend expectations.
Comparison with other companies
Despite fluctuations in oil prices affecting Exxon Mobil’s dividend payouts, the company remains a leader among its peers. Chevron, BP, and Shell also offer attractive dividend yields, but Exxon Mobil’s consistent payout growth sets it apart.
Investors can use stock screeners to compare key metrics like dividend payout ratios and dividend safety scores across multiple companies in the energy sector. 6
While some competitors may occasionally offer special dividends or have higher yields, Exxon Mobil’s commitment to steady increases and a sustainable payout ratio makes it a reliable choice for income-focused investors.
The company’s strong balance sheet and cash flow generation provide a solid foundation for maintaining its dividend even during challenging market conditions. By reinvesting dividends through a DRIP or holding shares in a tax-advantaged account, shareholders can compound their returns over time and benefit from Exxon Mobil’s long-term success relative to its industry rivals. 2
Conclusion
In closing, Exxon Mobil’s XOM stock dividend offers a reliable income stream for investors. Its consistent payout growth and sustainable dividend ratio make it an attractive choice for those seeking steady returns.
By understanding the company’s dividend history and strategy, investors can make informed decisions about including XOM in their portfolios.
FAQs
1. What is an ex-dividend date for Exxon Mobil’s XOM stock?
The day before the record date is the ex-date. You must own the shares before the ex-date to get the next dividend payment.
2. How are Exxon Mobil’s XOM stock dividends taxed?
The IRS taxes qualified dividends at lower capital gains rates. Ordinary dividends have higher tax rates.
3. Can I reinvest Exxon Mobil’s XOM stock dividends?
Yes, many brokers offer a dividend reinvestment plan (DRIP). This lets you buy more shares with your dividends instead of taking the cash.
4. What factors impact Exxon Mobil’s ability to pay dividends?
Exxon Mobil’s dividend depends on earnings, debt levels, and cash flow. The company may cut the dividend if it faces financial trouble.
5. Should I buy Exxon Mobil stock for the dividend?
Your risk tolerance and goals matter most. Exxon Mobil’s dividend yield may look tempting. But don’t forget to consider the stock’s total return potential too.
References
- ^ https://finance.yahoo.com/news/exxon-mobil-corps-dividend-analysis-110150205.html (2024-05-13)
- ^ https://investor.exxonmobil.com/stock-info/dividends
- ^ https://www.streetinsider.com/dividend_history.php?q=xom
- ^ https://www.nasdaq.com/market-activity/stocks/xom/dividend-history
- ^ https://seekingalpha.com/symbol/XOM/dividends/history
- ^ https://finance.yahoo.com/news/why-exxon-mobil-xom-great-154508407.html (2024-05-15)
