What's the Value of Exxon's Dividend?
What's the Value of Exxon's Dividend?
ExxonMobil, one of the world's largest publicly traded oil companies, has been paying dividends to its shareholders for decades. But what is the value of Exxon's dividend, and is it a good investment for income-seeking investors?
Exxon's Dividend Yield
Exxon'sdividend yield, which is the annual dividend per share divided by the stock price, has been fluctuating in recent years. As of August 2021, the dividend yield is around 5%, which is higher than the average of S&P 500 companies. This means that if you buy Exxon's stock at its current price, you can expect to receive a 5% return on your investment in the form of dividends.
Exxon's Dividend History
Exxon has a long history of paying dividends to its shareholders. In fact, the company has been paying dividends for over 100 years and has increased its dividend for the past 38 years. This demonstrates Exxon's commitment to returning value to its shareholders.
Exxon's Dividend Policy
Exxon'sdividend policyis to pay a reliable and increasing dividend to its shareholders. The company aims to maintain its dividend even during periods of volatility in theoil and gas markets. Exxon also has a strong balance sheet, which provides confidence that it can continue to pay dividends in the long run.
Investing in Exxon's Dividend
Investing in Exxon's dividend can be a good option for income-seeking investors. The company has a strong track record of paying and increasing its dividend, and its current dividend yield is higher than the average of S&P 500 companies. However, it is important to note that investing in Exxon's stock also comes with risks, such as volatility in the oil and gas markets and potential changes in the company's dividend policy.
In conclusion, Exxon's dividend is a valuable investment option for income-seeking investors. The company has a long history of paying and increasing its dividend, and its current dividend yield is higher than the average of S&P 500 companies. However, it is important to consider the risks associated with investing in Exxon's stock and to conduct thorough research before making any investment decisions.
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