10 Best GARP Stocks That Pay Dividends

3. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 86

An American oil and gas company, Exxon Mobil Corporation (NYSE:XOM) ranks third on our list of the best GARP stocks that pay dividends. The company continues to be a key player in the global fossil fuel industry while accelerating its investments in low-carbon energy. As part of its 2030 strategy, it plans to allocate up to $30 billion toward low-emission projects between 2025 and 2030. Moreover, it has partnered with the Texas General Land Office to secure the largest offshore carbon dioxide storage site in the US. The company is also making strides in developing the world’s largest low-carbon hydrogen production facility, which is projected to generate up to 1 billion cubic feet of hydrogen per day. In the past 12 months, the stock has surged by over 7%.

In the fourth quarter of 2024, Exxon Mobil Corporation (NYSE:XOM) reported revenue of $83.4 billion, marking a 1.1% decline from the same quarter the previous year. Since 2019, it has achieved $12.1 billion in Structural Cost Savings, outperforming its competitors and more than offsetting the effects of inflation and growth. The company’s return on capital employed for the year was the highest in its industry at 12.7%, with a five-year average of 10.8%.

Exxon Mobil Corporation (NYSE:XOM) showcased a strong cash position in FY24, generating $55 billion in free cash flow, its third-highest result in the past decade. The total free cash flow for the year amounted to $36.2 billion. The company returned $16.7 billion to shareholders through dividends and plans to maintain its $20 billion annual share repurchase program through 2026. Furthermore, it has been consistently increasing its dividends for the past 42 years. The company’s quarterly dividend comes in at $0.99 per share for a dividend yield of 3.66%, as of February 14.