Exxon Mobil Full Dividend History & Analysis (XOM)

Exxon Mobil is the largest oil and gas company in the United States.

The company operates through three segments: Upstream, Energy Products, Chemical Products, and Specialty Products. Upstream contributes roughly 56% of the company’s operating profits, and focuses on oil exploration and production. Energy Products is responsible for producing fuels and contributes ~32% of operating profits, and Chemical Products and Specialty Products each contribute under 10% of operating profits.

XOM’s dividend yield for the last 12 months is 3.2%, which means that investors would get $32 in dividends per year for every $1,000 invested in the stock. The dividend yield is found by dividing the company’s dividend over the last twelve months, $3.76, by the stock’s share price, $119, which is how we arrive at a dividend yield of 3.2%.

XOM’s current dividend yield is 36% lower than its 5-year average:

It’s generally better to buy a stock when its dividend yield is higher than its historical average because a stock’s dividend yield rises as its share price falls.

Buying high-quality dividend stocks during periods when the dividend yield is higher than average can be an effective investing strategy.

Even though Exxon’s dividend yield is a bit lower than its 5-year average, it’s still one of the most popular dividend stocks in the US because it’s one of the world’s leading oil companies, and it has a very long dividend track record.

Notable Historic Dividend Yields:

• Last fiscal year average dividend yield: 3.6%
• 3-year average dividend yield: 3.7%
• 5-year average dividend yield: 5.0%
• 10-year average dividend yield: 4.3%

 

Check out Exxon Mobil’s full dividend history >>>

• ExxonMobil distributes its dividend on a quarterly basis, which means that it pays one-quarter of its annual dividend once every three months.
• ExxonMobil’s next ex-dividend date is November 14th, 2024, which implies that investors who purchase shares before that date will be eligible to receive dividends on those shares on the next dividend payment date.
• ExxonMobil’s next dividend payment date is December 10th, 2024. This means that any long-term shareholders or new investors who buy their shares before Exxon’s next ex-dividend date on November 14th will receive dividends on their shares on December 10th.

Dividend safety is important for investors because it measures a company’s ability to continue paying and increasing dividends to shareholders without stopping or reducing dividend payments.

Cutting dividends is highly frowned upon on Wall Street, so companies will generally only reduce or cut their dividend payments if they don’t have the financial means to continue paying dividends.

That’s why it’s important to judge a company’s financial health. A business that has a high dividend safety rating has strong earnings that can support dividend payments, so there’s a low risk of the company reducing its dividends.

Payout Ratio & Earnings Analysis

• LTM Dividends per Share: $3.76
• LTM Earnings per Share: $8.35
• LTM Payout Ratio: 45.7%

Exxon Mobil has a payout ratio for the last twelve months of 45.7%, which indicates that 45.7% of its $8.35 in earnings per share were distributed as a $3.76 dividend over the last 12 months. 

A company with a low payout ratio below 70% typically has a strong dividend with a decreased risk of reducing its dividend. These companies retain a substantial portion of their earnings, which allows them to reinvest in the business, build financial reserves, and weather economic downturns.

Financial Health

Exxon has averaged a 57.1% payout ratio over the past 10 years:

Notable Historic Payout Ratios:

• LTM payout ratio: 45.7%
• 3-year average payout ratio: 44.4%
• 5-year average payout ratio: 33.8%
• 10-year average payout ratio: 57.1%

 

Check out Exxon Mobil’s complete financial statements >>>

For the next fiscal year, Wall Street analysts expect Exxon Mobil to have a dividend payout ratio of 45.0%.

This indicates that ExxonMobil should be able to comfortably make its dividend payments for the next fiscal year.

It is worth noting that dividend safety can change over time, so it’s important to regularly monitor a company’s financial performance and dividend payment history.

Dividend growth is an important aspect of dividend investing because it means that dividends will grow over time, which helps to offset the erosive forces of inflation and boost total shareholder returns.

It also signals that a company prioritizes shareholders’ returns and shows that management has confidence that the company’s earnings will grow in the future.

The chart below shows how ExxonMobil has grown dividends per share at a 2.6% 5-Year CAGR, which is a below average dividend growth rate:

Notable Dividend Growth Rates:

• Last Fiscal Year’s Dividend Growth: 3.7%
• 3-Year Dividend Growth: 1.9% CAGR
• 5-Year Dividend Growth: 2.6% CAGR
• 10-Year Dividend Growth: 4.1% CAGR

What truly matters for dividend investors is a company’s potential to continue growing its dividends, as this will determine whether Exxon Mobil will be a reliable dividend stock.

Analysts expect Verizon Communications to grow its dividends per share at an average growth rate of 1.8% over the next 2 years:

View all Analyst Estimates for Exxon Mobil >>>

Exxon Mobil has increased its dividends to shareholders for 41 consecutive years.

This makes Exxon Mobil a Dividend Aristocrat. ExxonMobil has a strong dividend track record.

This is especially impressive because oil and gas is a cyclical industry. Still, Exxon has reliably grown dividends for the past 41 years through recessions and economic downturns.

The dividend history graph below shows a visual record of Exxon Mobil’s dividend payments to shareholders over the past several years, and the chart below shows Exxon Mobil’s history of quarterly dividend payments: