10 Cheapest Dividend Aristocrats to Buy Now

3. Exxon Mobil Corporation (NYSE:XOM)

Forward P/E Ratio: 13.83

Exxon Mobil Corporation (NYSE:XOM) is an American oil and gas company that is engaged in the exploration, production, refining, and distribution of petroleum products. In Q4 2024, the company posted revenue of $83.4 billion, which represents a 1.1% decrease compared to the same quarter the previous year. Since 2019, the company has generated $12.1 billion in Structural Cost Savings, surpassing its competitors and more than compensating for inflation and growth. Its return on capital employed for the year was the highest in the industry at 12.7%, with a five-year average of 10.8%.

Exxon Mobil Corporation (NYSE:XOM) has surged by about 8% in the past 12 months. The company remains a major player in the global fossil fuel sector while also ramping up its efforts in low-carbon energy. As part of its strategy for 2030, it plans to invest as much as $30 billion in low-emission projects from 2025 to 2030. Furthermore, it has secured the US’ largest offshore carbon dioxide storage site in collaboration with the Texas General Land Office. The company is also progressing in building the world’s largest facility for low-carbon hydrogen production, which is expected to produce up to 1 billion cubic feet of hydrogen daily.

Exxon Mobil Corporation (NYSE:XOM), one of the best dividend aristocrat stocks, currently pays a quarterly dividend of $0.99 per share for a dividend yield of 3.64%, as of February 14. The company reported a robust cash position in FY24, generating $55 billion in free cash flow, marking its third-highest performance in the last ten years. The total free cash flow for the year was $36.2 billion. The company returned $16.7 billion to shareholders in dividends and has plans to continue its $20 billion annual share repurchase program through 2026. In addition, it has been rewarding shareholders with growing dividends for the past 42 years.