ExxonMobil’s dividend payment
In this part, we’ll look ExxonMobil’s (XOM) dividend yield trend and its latest dividend payment. ExxonMobil has reported dividend increases for 36 consecutive years.
ExxonMobil’s second-quarter dividend payment is expected to be $0.82 per share, which would represent 9.3% growth over the second quarter of 2016. The dividend was declared on April 25 and is expected to be paid on June 11.
ExxonMobil’s dividend yield
ExxonMobil’s (XOM) current dividend yield stands at 4.0%, which represents the annualized dividend as a percentage of the stock price. XOM’s dividend yield has risen from its yield of 3.4% in the second quarter of 2016. The increase in ExxonMobil’s dividend yield is due to a rise in dividend payments and a fall in XOM’s stock price in the stated period.
The company paid $3.3 billion in dividends in the first quarter. In the company’s first-quarter earnings call on April 27, ExxonMobil’s management reiterated its commitment to shareholder returns.
During the call, Jeff Woodbury, ExxonMobil’s vice president of investor relations, stated, “Since the merger of Exxon Mobil we have bought back about 40% of the shares outstanding. So it has been a key part of our total distributions and it will continue to be one of the options that we’ll consider. But, first and foremost, reliably growth the dividend, and then, second, accretively invest in our business and then we’ll think about how to use that extra cash.”
Peers’ dividend yields
Among ExxonMobil’s peers, Royal Dutch Shell’s (RDS.A) dividend yield has declined from 7.5% in the second quarter of 2016 to its current level of 5.4%. Chevron’s (CVX) dividend yield has fallen from 4.2% to 3.7% in the same period.
Global players Total (TOT) and Equinor (EQNR) reported slumping dividend yields. Total’s dividend yield fell from 5.6% in the second quarter of 2016 to its current level of 4.8%. Equinor’s dividend yield slid from 5.0% in the second quarter of 2016 to its current level of 3.5%.
In the next part, we’ll examine which institutions are buying ExxonMobil stock.
Correction: An earlier version of this article suggested that ExxonMobil’s second-quarter dividend payment was expected to be $0.89 per share rather than $0.82.