10 Best Dividend Aristocrat Stocks To Buy Right Now

2. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 86

An American energy company, Exxon Mobil Corporation (NYSE:XOM) ranks second on our list of the best dividend aristocrat stocks. The company ranks among the most favored energy stocks for investors, largely due to the benefits it derives from strategic acquisitions. In May, it finalized its purchase of Pioneer Natural Resources, a deal that included the issuance of 545 million ExxonMobil shares, valued at $63 billion at the time, along with the assumption of $5 billion in debt. This merger established ExxonMobil as the leader in high-return unconventional resource development, offering unmatched potential in this area. Since the start of 2024, the stock has surged by nearly 18%.

In the third quarter of 2024, Exxon Mobil Corporation (NYSE:XOM) reported revenue of $90.02 billion, which surpassed analysts’ estimates by $1.66 billion. The company’s exceptional performance reflects its enterprise-wide transformation’s effectiveness in enhancing its structural earnings capacity. In the Upstream segment, the profitability of barrels produced, on a constant price basis, has doubled. Within Product Solutions, the company has optimized its refining operations and boosted sales of high-value products. Additionally, ExxonMobil has realized $11.3 billion in structural cost savings since 2019, showcasing its commitment to operational efficiency across the board.

During Q3, Exxon Mobil Corporation (NYSE:XOM) reported an operating cash flow of $17.6 billion and its free cash flow came in at $11.3 billion. The company returned $9.8 billion to shareholders during the quarter in dividends and share repurchases. On November 1, it announced a 4% hike in its quarterly dividend to $0.99 per share. Through this increase, the company stretched its dividend growth streak to 42 years. The stock has a dividend yield of 3.29%, as recorded on November 25.

Insider Monkey’s database of Q3 2024 showed that 86 hedge funds owned stakes in Exxon Mobil Corporation (NYSE:XOM), compared with 92 a quarter earlier. The collective value of these stakes is nearly $7 billion.