EXXON MOBIL CORP (NYSE:XOM) stands out as a strong candidate for dividend investors, according to our Best Dividend Stocks screener. The company combines a solid dividend profile with decent profitability and financial health, making it a potentially stable choice for income-focused portfolios.
Dividend Strength
Attractive Yield: XOM offers a dividend yield of 3.86%, which is above the S&P 500 average of 2.38%. While not the highest in its industry, it remains competitive.
Reliable Track Record: The company has paid dividends for at least 10 years without reductions, demonstrating commitment to shareholders.
Sustainable Payout: The payout ratio of 51.94% suggests dividends are well-covered by earnings, though investors should monitor future profitability.
Profitability & Financial Health
Solid Margins: XOM maintains a Profit Margin of 9.76% and has seen improvements in operating efficiency over recent years.
Strong Solvency: With a Debt-to-Equity ratio of 0.12, the company is in better shape than 74.65% of its peers, reducing bankruptcy risk.
Liquidity Concerns: A Quick Ratio of 0.90 indicates some short-term liquidity pressure, though this is in line with industry norms.
Valuation & Growth
Reasonable Valuation: Trading at a P/E of 13.66, XOM is priced below the S&P 500 average, offering value relative to broader markets.
Mixed Growth Outlook: While earnings are expected to grow at 9.87% annually, revenue is projected to decline, requiring investor caution.
Exxon Mobil (XOM) offers a reliable 3.86% dividend yield, strong profitability, and solid financial health, making it a compelling choice for dividend investors.