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

By Mill Chart

Last update: Jul 21, 2025

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.

Exxon Mobil stock chart

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.

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

Disclaimer

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

EXXON MOBIL CORP

NYSE:XOM (7/25/2025, 5:25:33 PM)

After market: 110.2 -0.2 (-0.18%)

110.4

-0.39 (-0.35%)



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