Currently, the company's paying a quarterly dividend of $0.87, which pays $3.48 per share every year and yields 10.7% annually. It's an incredible yield that on a $25,000 investment would generate more than $2,600 in annual dividends.
The positive for dividend investors is that as challenging a year as it's been for Exxon, the company's still generating positive cash flow. In the third quarter, Exxon generated $4.4 billion in cash flow during the period.
It's also planning for more cost reductions in 2021 in order to strengthen operations. Its third-quarter loss of $680 million was also a significant improvement from the second quarter where Exxon incurred a loss of $1.1 billion.
While the business looked to be improving in Q3, investors should be very careful with this stock as the worst may not be over just yet, and a cut to the dividend may prove to be inevitable.