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 screen. The company combines a solid dividend profile with reasonable profitability and financial health, making it a noteworthy option for income-focused portfolios.

Dividend Strength

• Dividend Yield: XOM offers a yield of 3.55%, which is above the S&P 500 average of 2.35%. While not the highest in its sector, it remains competitive.
• Reliable Track Record: The company has paid dividends for at least 10 years without reductions, demonstrating consistency.
• Sustainable Payout: With a payout ratio of 51.94%, XOM maintains a balance between rewarding shareholders and retaining earnings for growth.

Profitability & Financial Health

• Stable Margins: XOM’s operating margin of 12.76% has improved in recent years, reflecting efficient operations.
• Strong Solvency: A low debt-to-equity ratio of 0.12 and a healthy Altman-Z score of 4.06 indicate financial stability.
• Positive Cash Flow: The company has generated positive operating cash flow over the past five years, supporting dividend payments.

Valuation & Growth

• Reasonable Valuation: XOM trades at a P/E of 14.39, below the S&P 500 average, suggesting it is fairly priced.
• Earnings Growth: While recent earnings growth has been uneven, analysts expect an annual EPS increase of 12.57% in the coming years.

For a deeper analysis, review the full fundamental report on XOM.

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Disclaimer

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