Exxon Mobil Corporation (NYSE:XOM) is a top stock on the U.S. markets and while it may not be popular with environmentalists, for investors that are looking for a dividend, it could be a great opportunity in an industry that could offer some diversification.
While it’s no secret that oil and gas stocks have struggled over the years, and Exxon has been no exception, falling more than 25% in the past five years, that doesn’t mean that they couldn’t be good investments.
Exxon, after all, has continued to generate strong numbers in recent years with profits reaching $20.8 billion in 2018 and $19.7 billion the year before that. Despite the adversity in the industry, Exxon has been one of the most successful companies for investors to choose from.
One of the things that makes Exxon very attractive is its dividend. Currently, the stock pays shareholders a dividend yield of more than 5.1%. That’s a terrific payout and what makes it even better is that Exxon has increased its dividend payments over the years as well.
Five years ago, Exxon was paying quarterly dividend payments of $0.69. Since then, they’ve risen to $0.87, which is an increase of 26%. That averages out to a compounded annual growth rate of 4.7%.
If the company were to continue increasing its dividend payments by that amount every year, then it would take about 15 years for the dividend to double in size.
Exxon is a great dividend stock, but it could also be a solid long-term investment if oil prices recover and the industry starts to show a bit more stability.
