Exxon Mobil’s 43 Year Dividend Streak Looks Secure Despite Falling Earnings

• Exxon Mobil (XOM) pays $3.96 yearly per share with a 3.38% yield. Exxon has raised its dividend for 43 consecutive years.

• Exxon’s payout ratios stand at 57.6% on earnings and 54.4% on free money stream. Each metrics present comfy protection.

• Internet revenue fell from $55.7B in 2022 to $33.7B in 2024. The dividend stays safe resulting from sturdy steadiness sheet power.

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Exxon Mobil (NYSE: XOM) pays an annual dividend of $3.96 per share, yielding 3.38%. The corporate has raised its dividend for 43 consecutive years, sustaining that streak via the 2020 oil value collapse. The query is whether or not this dividend stays sustainable as earnings decline from latest peaks.

XOM’s earnings payout ratio stands at 57.6%, calculated from TTM diluted EPS of $6.88 in opposition to the $3.96 annual dividend. This leaves substantial room even when earnings soften additional.

The free money stream image is tighter however wholesome. In 2024, XOM generated $30.7 billion in free money stream (working money stream of $55.0 billion minus capex of $24.3 billion) and paid $16.7 billion in dividends. That produces an FCF payout ratio of 54.4%.

The priority is the pattern. Internet revenue fell from $55.7 billion in 2022 to $33.7 billion in 2024. Q3 2025 earnings dropped 12.3% yr over yr. If this decline continues, payout ratios will rise.

XOM’s steadiness sheet is exceptionally sturdy. Internet debt of $53.3 billion in opposition to EBITDA of $61.7 billion produces a internet debt-to-EBITDA ratio of 0.86x. Curiosity protection stands at 53.7x, that means debt service barely registers in opposition to working revenue.

This monetary power proved vital in 2020, when XOM posted a $22.4 billion loss however maintained the $14.9 billion dividend by drawing on its steadiness sheet.

XOM’s 43-year dividend progress streak survived the 2020 pandemic, however required paying dividends from the steadiness sheet when free money stream turned adverse. The corporate paid $14.9 billion in dividends in opposition to adverse $2.6 billion in FCF that yr.

Administration has since restored profitability. From 2022 via 2024, XOM generated a median of $40.9 billion in annual free money stream, properly above the present $16.7 billion dividend requirement.

Dividend Security Score: Protected

XOM’s dividend is safe based mostly on present payout ratios of roughly 55% on each earnings and free money stream, mixed with a conservative steadiness sheet. The 43-year progress streak displays real dedication.

XOM works for revenue if oil costs stay above $70 per barrel and the corporate maintains capital self-discipline. Watch intently if crude falls under $60, which might strain each earnings and money stream sufficient to threaten dividend progress, although seemingly not the dividend itself given the steadiness sheet power.

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