Exxon Mobil Corporation (XOM) engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products, as well as transportation and sale of crude oil, natural gas, and petroleum products. This dividend aristocrat has paid dividends since 1911 and increased distributions on its common stock for 30 years in a row.
The company’s last dividend increase was in June 2012 when the Board of Directors approved a 21.30% increase to 57 cents/share. The company’s largest competitors include Chevron (CVX), British Petroleum (BP) and Royal Dutch (RDS.B). Over the past decade this dividend growth stock has delivered an annualized total return of 11.50% to its shareholders.
dividend payment doubling every ten years. If we look at historical data, going as far back as 1974 we see that Exxon Mobil has actually managed to double its dividend every nine and a half years on average. The dividend payout ratio has remained below 50% for the majority of the past decade. Exxon Mobil has a stingy dividend payout, and instead focuses its excess cash flows towards stock buybacks. A lower payout is always a plus, since it leaves room for consistent dividend growth minimizing the impact of short-term fluctuations in earnings.
is attractively valued at 9.20 times earnings, yields 2.60% and has an adequately covered dividend. Unfortunately, I find other companies such as Chevron (CVX) better values at the moment, which is why I do not plan on adding to my Exxon position significantly over the next year.
Full Disclosure: Long CVX, XOM and RDS.B
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