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.