An In-depth Look at the Upcoming Dividend and Historical Performance
Exxon Mobil Corp (NYSE:XOM) recently announced a dividend of $0.95 per share, payable on 2024-06-10, with the ex-dividend date set for 2024-05-14. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Exxon Mobil Corp's dividend performance and assess its sustainability.
What Does Exxon Mobil Corp Do?
ExxonMobil is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2023, it produced 2.4 million barrels of liquids and 7.7 billion cubic feet of natural gas per day. At the end of 2023, reserves were 16.9 billion barrels of oil equivalent, 66% of which were liquids. The company is one the world's largest refiners with a total global refining capacity of 4.5 million barrels of oil per day and is one of the world's largest manufacturers of commodity and specialty chemicals.
A Glimpse at Exxon Mobil Corp's Dividend History
Exxon Mobil Corp has maintained a consistent dividend payment record since 1983. Dividends are currently distributed on a quarterly basis. Exxon Mobil Corp has increased its dividend each year since 1983. The stock is thus listed as a dividend aristocrat, an honor that is given to companies that have increased their dividend each year for at least the past 41 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Exxon Mobil Corp's Dividend Yield and Growth
As of today, Exxon Mobil Corp currently has a 12-month trailing dividend yield of 3.15% and a 12-month forward dividend yield of 3.22%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Exxon Mobil Corp's annual dividend growth rate was 1.90%. Extended to a five-year horizon, this rate increased to 2.20% per year. And over the past decade, Exxon Mobil Corp's annual dividends per share growth rate stands at 3.80%.
Based on Exxon Mobil Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Exxon Mobil Corp stock as of today is approximately 3.51%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2024-03-31, Exxon Mobil Corp's dividend payout ratio is 0.43.
Exxon Mobil Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Exxon Mobil Corp's profitability 7 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Exxon Mobil Corp's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Exxon Mobil Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Exxon Mobil Corp's revenue has increased by approximately 25.50% per year on average, a rate that outperforms approximately 65.39% of global competitors.
Conclusion
Considering Exxon Mobil Corp's consistent dividend payments, growth in dividend rates, sustainable payout ratio, strong profitability, and robust revenue growth, the company presents a compelling case for dividend investors. As we anticipate the upcoming dividend payment, the overall financial health of Exxon Mobil Corp supports the likelihood of continued dividend reliability and growth. For further exploration of high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
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2024-05-13 11:01:50Z
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