June 16, 2026 a 02:47 am
XOM: Dividend Analysis - Exxon Mobil Corporation
Exxon Mobil Corporation, a leading entity in the energy sector, carries a reliable dividend history, marking its 57-year streak without cuts. With a dividend yield of 2.58%, it presents moderate but consistent growth, attracting dividend-focused investors. The company's payout ratios indicate a fair balance between rewarding shareholders and maintaining capital for reinvestments.
📊 Overview
The overview provides insight into Exxon Mobil's robust standing in the energy sector. With consistent dividends and no recent cuts, it highlights the corporation's commitment to shareholder returns.
| Attribute | Detail |
|---|---|
| Sector | Energy |
| Dividend yield | 2.58% |
| Current dividend per share | 3.98 USD |
| Dividend history | 57 years |
| Last cut or suspension | None |
🗣️ Dividend History
The dividend history is a testament to Exxon Mobil's financial resilience and shareholder commitment. This track record is crucial for investors seeking stable income.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 2.06 |
| 2025 | 4.00 |
| 2024 | 3.84 |
| 2023 | 3.68 |
| 2022 | 3.55 |
📈 Dividend Growth
The dividend growth over the years reflects the company’s ability to increase payouts alongside earnings growth. Investors favor companies with a proven growth trajectory.
| Time | Growth |
|---|---|
| 3 years | 4.06% |
| 5 years | 2.82% |
The average dividend growth is 2.82% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
Payout ratios give insight into the sustainability of dividends relative to earnings and cash flow. A balanced ratio ensures consistency in delivering shareholder value whilst retaining sufficient funds for growth.
| Key Figure | Ratio |
|---|---|
| EPS-based | 65.74% |
| Free cash flow-based | 87.75% |
With an EPS payout ratio of 65.74% and an FCF payout ratio of 87.75%, Exxon Mobil maintains a prudent approach to balancing dividend payments with reinvesting into the business.
✅ Cashflow & Capital Efficiency
Analyzing cash flow dynamics and capital efficiency provides clarity on financial flexibility, enabling strategic decisions related to dividends and growth investments.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 8.26% | 6.64% | 4.53% |
| Earnings Yield | 8.89% | 7.28% | 5.53% |
| CAPEX to Operating Cash Flow | 39.59% | 44.18% | 54.57% |
| Stock-based Compensation to Revenue | 0.18% | 0.00% | 0.00% |
| Free Cash Flow / Operating Cash Flow Ratio | 60.41% | 55.82% | 45.43% |
Exxon Mobil’s cash flow metrics indicate solid capability to fund dividends, with capital efficiently allocated for future growth prospects.
⚠️ Balance Sheet & Leverage Analysis
Understanding the balance sheet and leverage provides insights into risk management and long-term financial health, crucial for sustaining dividend reliability.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 20.30% | 15.82% | 16.78% |
| Debt-to-Assets | 11.05% | 9.20% | 9.70% |
| Debt-to-Capital | 16.87% | 13.66% | 14.37% |
| Net Debt to EBITDA | 0.14 | 0.25 | 0.48 |
| Current Ratio | 1.48 | 1.31 | 1.15 |
| Quick Ratio | 1.09 | 0.97 | 0.79 |
| Financial Leverage | 1.83 | 1.72 | 1.73 |
The leverage ratios reveal Exxon Mobil’s robust financial health, showcasing an effective balance in leveraging for growth while maintaining sufficient liquidity.
🏆 Fundamental Strength & Profitability
Examining profitability and operational efficiency metrics underscores the capability to sustain dividend payouts and compete effectively in the market.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 17.58% | 12.77% | 11.12% |
| Return on Assets | 9.57% | 7.43% | 6.42% |
| Margins: Net | 10.76% | 9.93% | 8.90% |
| Margins: EBIT | 16.02% | 14.70% | 12.93% |
| Margins: EBITDA | 22.19% | 21.60% | 20.95% |
| Margins: Gross | 25.14% | 22.62% | 21.68% |
| R&D to Revenue | 0.26% | 0.29% | 0.37% |
Exxon Mobil's profitability metrics present a sturdy picture of operational efficiency, critical for maintaining and growing dividend distributions.
🔍 Price Development
📊 Dividend Scoring System
| Category | Score | |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 3 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Overall Score: 33/40
⚖️ Rating
Based on the comprehensive analysis of financial health, dividend history, and growth prospects, Exxon Mobil Corporation is a reliable option for investors seeking steady income. The company's commitment to sustaining and progressively increasing dividends echoes its strong market position and effective financial management. Recommended as a stable addition to a diversified portfolio.
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