ExxonMobil’s dividend payment
In this part, we’ll discuss ExxonMobil’s (XOM) dividend yield trend. First, we’ll look at ExxonMobil’s recent dividend payment.
ExxonMobil has paid growing dividends for the past several years. In the first quarter, ExxonMobil paid $0.82 per share on March 11. The dividend was announced on January 30. The dividend payment in the first quarter represents 9.3% growth compared to the dividends paid in the first quarter of 2017.
ExxonMobil’s dividend yield
Currently, ExxonMobil’s dividend yield is 4.1%. The yield shows an annualized dividend as a percentage of the stock price. The stock’s dividend yield was 3.6% in the first quarter of 2017. The rise in ExxonMobil’s dividend yield is due to an increase in its dividend payments and a decline in its stock price during the stated period.
ExxonMobil paid $13.8 billion in cash dividends in 2018. In 2017 and 2016, the company paid dividends of $13.0 billion and $12.5 billion, respectively. ExxonMobil has paid increasing dividends for the past 36 years. The company focuses on paying consistent and growing dividends.
ExxonMobil also recognizes the fact that its dividend payments can only increase steadily if its earnings grow consistently. To raise the earnings, ExxonMobil needs to invest in growth projects. ExxonMobil plans to incur optimal capital expenditure to grow its future earnings and dividends.
Peers’ dividend yield
Royal Dutch Shell’s (RDS.A) dividend yield has fallen from 6.8% in the first quarter of 2017 to the current level of 6.0%. Chevron’s (CVX) dividend yield has fallen from 3.9% to 3.8% during the same period. Total (TOT) and Equinor’s (EQNR) dividend yields fell from 5.3% and 4.7%, respectively, in the first quarter of 2017, to the current levels of 5.2% and 4.2%, respectively.