1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 86
An American oil and gas company, Exxon Mobil Corporation (NYSE:XOM) is engaged in the exploration, production, refining, and distribution of petroleum products. The company continues to be a dominant force in the global fossil fuel industry while also increasing its focus on low-carbon energy. As part of its 2030 strategy, the company plans to invest up to $30 billion in low-emission projects between 2025 and 2030. In addition, it has secured the largest offshore carbon dioxide storage site in the U.S. through a partnership with the Texas General Land Office. The company is also advancing the development of the world’s largest low-carbon hydrogen production facility, expected to have a capacity of up to 1 billion cubic feet of hydrogen per day.
In the fourth quarter of 2024, Exxon Mobil Corporation (NYSE:XOM) reported revenue of $83.4 billion, a 1.1% decline from the same period the previous year. Since 2019, the company has achieved $12.1 billion in Structural Cost Savings, outpacing its competitors and more than offsetting inflation and growth. Its return on capital employed for the year was the best in the industry at 12.7%, with a five-year average of 10.8%.
Exxon Mobil Corporation (NYSE:XOM)’s cash position in FY24 remained strong, generating $55 billion in free cash flow, its third-best year in the past decade. The company’s free cash flow for the year totaled $36.2 billion. During the year, it returned $16.7 billion to shareholders through dividends and plans to extend its annual $20 billion share repurchase program through 2026. It currently pays a quarterly dividend of $0.99 per share and has a dividend yield of 3.64%, as of February 8. It is one of the best dividend stocks on our list as the company has raised its payouts for 42 consecutive years.
Insider Monkey’s database of Q3 2024 indicated that 86 hedge funds owned stakes in Exxon Mobil Corporation (NYSE:XOM), compared with 92 a quarter earlier. These stakes have a total value of nearly $7 billion. First Eagle Investment Management was one of the company’s leading stakeholders.
Overall Exxon Mobil Corporation (NYSE:XOM) ranks first on our list of the best dividend stocks from the energy sector. While we acknowledge the potential for XOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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