EXXON MOBIL CORP (NYSE:XOM) - A Reliable Dividend Stock Worth Considering

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.

For a deeper dive, review the full fundamental analysis of XOM.

Our Best Dividend Stocks screener provides more high-quality dividend stock ideas.

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.