April 11, 2025 a 06:49 pm
XOM: Dividend Analysis - Exxon Mobil Corporation
Exxon Mobil Corporation boasts a robust dividend profile, marked by a consistent track record of over 56 years of dividend history. With a current dividend yield of 3.61%, the company continues to be an attractive option for income-focused investors. Despite a relatively modest growth rate over the past five years, Exxon's stable and uninterrupted dividend history underscores its commitment to returning value to shareholders.
📊 Overview
Exxon Mobil operates within the energy sector, a crucial area known for its cyclical and capital-intensive characteristics. A dividend yield of 3.61% paired with a current dividend per share of $3.89 illustrates the company's policy of rewarding shareholders. Moreover, with 56 years of dividend history and no recent suspensions or cuts, Exxon showcases its reliability in dividend payments.
| Metric | Data |
|---|---|
| Sector | Energy |
| Dividend yield | 3.61% |
| Current dividend per share | $3.89 |
| Dividend history | 56 years |
| Last cut or suspension | None |
📈 Dividend History
Examining Exxon's dividend history reveals a stable pattern of payments, even through challenging economic conditions. This robustness provides confidence to shareholders about the company's financial health and strategic foresight.
| Year | Dividend Per Share |
|---|---|
| 2025 | $0.99 |
| 2024 | $3.84 |
| 2023 | $3.68 |
| 2022 | $3.55 |
| 2021 | $3.49 |
📈 Dividend Growth
Dividend growth is critical for income investors who rely on increasing income streams. Over the past three years, Exxon's dividends have grown by 3.24%, with a five-year growth rate of 2.28%. This shows moderate but steady dividend growth, indicating prudent management and fiscal health.
| Time | Growth |
|---|---|
| 3 years | 3.24% |
| 5 years | 2.28% |
The average dividend growth is 2.28% over 5 years. This indicates moderate but steady dividend growth.
📈 Payout Ratio
The payout ratio is a key measure that indicates the sustainability of dividends. Exxon's EPS-based payout ratio stands at 51.49%, while the FCF-based ratio is 54.73%. Both figures are within a manageable range, suggesting that the dividends are covered by earnings and cash flow.
| Key Figure | Ratio |
|---|---|
| EPS-based | 51.49% |
| Free cash flow-based | 54.73% |
These payout ratios suggest that dividends are well-covered, providing a cushion against potential earnings fluctuations.
📈 Cashflow & Capital Efficiency
Understanding cash flow dynamics and capital efficiency is essential for gauging operational profitability. Free Cash Flow Yield and Earnings Yield indicate positive cash generation, while the metrics such as CAPEX to Operating Cash Flow and Stock-based Compensation to Revenue reflect controlled capital investments.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 6.64% | 8.07% | 12.59% |
| Earnings Yield | 7.28% | 8.69% | 12.02% |
| CAPEX to Operating Cash Flow | 44.18% | 39.59% | 23.97% |
| Stock-based Compensation to Revenue | 0.00% | 0.18% | 0.16% |
| Free Cash Flow / Operating Cash Flow Ratio | 55.82% | 60.41% | 76.03% |
These metrics indicate that Exxon maintains a balanced approach to reinvestment and shareholder returns, demonstrating strong capital management.
📈 Balance Sheet & Leverage Analysis
A strong balance sheet is crucial for enduring market volatility. The leverage ratios, including Debt-to-Equity and Debt-to-Assets, reveal manageable debt levels, ensuring financial stability and strong liquidity positions.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.254 | 0.233 | 0.211 |
| Debt-to-Assets | 0.152 | 0.127 | 0.112 |
| Debt-to-Capital | 0.203 | 0.189 | 0.174 |
| Net Debt to EBITDA | 0.622 | 0.217 | 0.113 |
| Current Ratio | 1.308 | 1.479 | 1.414 |
| Quick Ratio | 1.308 | 1.095 | 1.060 |
| Financial Leverage | 1.676 | 1.837 | 1.892 |
These leverage metrics underscore Exxon's prudent financial management, ensuring its ability to meet obligations while strategically managing capital structures.
📈 Fundamental Strength & Profitability
Profitability indicators such as Return on Equity and Return on Assets are crucial for understanding core financial performance. Operating margins further illustrate Exxon's efficiency in cost management.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 12.45% | 17.58% | 28.58% |
| Return on Assets | 7.43% | 9.57% | 15.10% |
| Return on Invested Capital | 7.33% | 9.99% | 15.77% |
| Net Margin | 9.93% | 10.76% | 13.98% |
| EBIT Margin | 14.70% | 16.02% | 19.70% |
| EBITDA Margin | 21.61% | 22.19% | 25.73% |
| Gross Margin | 22.62% | 25.14% | 25.85% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
Exxon's profitability ratios reflect efficient operations and sound investment strategies, contributing to consistently solid performance.
Price Development
🗣️ Dividend Scoring System
| Criteria | Score | Indicator |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout ratio | 3 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 34/40
✅ Rating
Exxon Mobil Corporation demonstrates a strong dividend profile backed by consistently stable and generous payouts, solid financial performance, and strategic fiscal management. It is recommended for investors seeking reliable income streams with a preference for stability and measured growth. Overall, Exxon harnesses its scale and financial prowess to maintain its position as a leader in dividend returns within the energy sector.