What Amount of Dividends is Projected for ExxonMobil in 2025?
What Amount of Dividends is Projected for ExxonMobil in 2025?
In the chilly approach of winter, snowflakes dance in the forecasts, holiday lists are exchanged between families, and investors are mapping out financial plans for 2025. For income investors specifically, this can mean digging into promising stocks and calculating potential dividends for the upcoming year. One stock that often pops up on their radar: ExxonMobil (XOM, 1.63%). Let's delve deeper into the oil titan and what readers can anticipate from it in terms of dividends in 2025.
For close to half a century, this oil powerhouse has been channeling more passive income back to shareholders
ExxonMobil's 42-year streak of increasing its dividend isn't its only allure for income investors. The company's dedication to generously rewarding its shareholders is clear, as leadership emphasized in their Q1 2024 conference call. To CFO, Kathy Mikells, "sustainability, competitiveness, and growth" are key to ensuring the dividend's continuance.
The company disbursed $14.939 billion and $14.941 billion in dividends for 2022 and 2023, respectively. While the dividend per share slightly increased around 4% from 2022 to 2023, ExxonMobil's factored share repurchases result in a nominal increase in cash dividends paid to investors, with a projection of continuing this trend at roughly $20 billion annually.
After completing its final quarterly dividend payment in December, ExxonMobil will have paid $3.84 per share to shareholders in 2024. Assuming a 4% increase in the dividend per share for 2025 and a payment of $3.99 per share, the total cash dividends paid to investors may still hover around $15 billion.
Is now the perfect time to supplement your portfolio with ExxonMobil?
ExxonMobil's steadfast promise to reward shareholders makes it an appealing option for greasing the gears of one's passive income network. With shares trading at a measly 13.2 times forward earnings, it seems like an opportune moment to add ExxonMobil stock to your portfolio.
In light of ExxonMobil's commitment to dividend increases and its current relatively low price-to-earnings ratio, some investors might consider it a promising opportunity for investing in 2025. The company's consistent dividend payments and focus on shareholder rewards could make it an attractive option for those seeking passive income sources.
Furthermore, ExxonMobil's vigorous finance strategy, which includes significant dividend payments and share repurchases, could potentially continue to boost the returns for its investors in the upcoming financial year.