Is EXXON MOBIL CORP (NYSE:XOM) suited for dividend investing?

Our stock screener has singled out EXXON MOBIL CORP (NYSE:XOM) as a promising choice for dividend investors. XOM not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Assessing Dividend Metrics for XOM

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. XOM has received a 7 out of 10:

• Compared to an average S&P500 Dividend Yield of 2.39, XOM pays a better dividend.
• XOM has paid a dividend for at least 10 years, which is a reliable track record.
• XOM has not decreased their dividend for at least 10 years, which is a reliable track record.
• XOM's earnings are growing more than its dividend. This makes the dividend growth sustainable.

How We Gauge Health for XOM

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. XOM has achieved a 6 out of 10:

• An Altman-Z score of 4.20 indicates that XOM is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 4.20, XOM belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
• XOM has a debt to FCF ratio of 1.36. This is a very positive value and a sign of high solvency as it would only need 1.36 years to pay back of all of its debts.
• XOM has a Debt to FCF ratio of 1.36. This is amongst the best in the industry. XOM outperforms 86.19% of its industry peers.
• XOM has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
• XOM has a better Debt to Equity ratio (0.14) than 74.76% of its industry peers.

Exploring XOM's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. XOM scores a 5 out of 10:

• XOM's Return On Assets of 7.43% is fine compared to the rest of the industry. XOM outperforms 70.48% of its industry peers.
• Looking at the Return On Equity, with a value of 12.77%, XOM is in the better half of the industry, outperforming 62.38% of the companies in the same industry.
• The Return On Invested Capital of XOM (8.12%) is better than 61.43% of its industry peers.
• In the last couple of years the Profit Margin of XOM has grown nicely.
• In the last couple of years the Operating Margin of XOM has grown nicely.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of XOM contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.