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ExxonMobil Announces Dividend Increase

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Series overview

In this series, we have looked at ExxonMobil’s (XOM) segmental earnings dynamics. We also looked at ExxonMobil stock performance after earnings and its price forecast range for the next seven calendar days. Plus, we reviewed analyst ratings for XOM after its earnings. Now we’ll look at ExxonMobil’s dividend announcement.

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ExxonMobil’s dividend increase

ExxonMobil’s dividend payments have risen consistently in the past three decades. In the second quarter of 2018, ExxonMobil announced a dividend payment of $0.82 per share, an increase of $0.05 per share over the previous quarter and a 6.5% increase compared to 2Q17. The dividend was announced on April 25 and will be paid on June 11, 2018.

During the 1Q18 earnings call, Jeff Woodbury, vice president of investor relations and secretary, stated, “I mean, simply put, remember we keep — we’re keeping very focused on our core mission and that is to grow shareholder value. I mean there is an intense focus by the corporation on value growth, okay. And part of if you think about our capital allocation approach fundamentally what we said was one of the first priority is growing shareholder value and distributing that success to our shareholders through our dividend and you’ve seen us s for 36 consecutive years continue to grow that that dividend.”

ExxonMobil’s dividend yield

XOM’s current dividend yield stands at 4.1%, which has risen from the 3.8% witnessed in 2Q17. The rise in yield is because of the rise in dividends coupled with the fall in ExxonMobil stock price in the stated period.

Peers’ dividend yield

In contrast to ExxonMobil, its peers have observed a fall in their dividend yields since 2Q17. BP’s (BP) dividend yield fell from 6.9% in 2Q17 to the current level of 5.4%. Also, Royal Dutch Shell’s (RDS.A) dividend yield fell from 7.2% to 5.3%. Other global players like Total (TOT) and Statoil (STO) saw a fall in dividend yields from 5.2% and 5.3%, respectively, in 2Q17, to current levels of 4.6% and 3.5%, respectively.

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