11 Best Dividend Paying Stocks to Buy According to Hedge Funds

6. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 104

An American multinational oil and gas company, Exxon Mobil Corporation (NYSE:XOM) is a global leader in integrated energy and chemical operations, ranks at the top of the best oil and gas dividend stocks to consider. In Q4 2024, the company reported a revenue of $83.4 billion, reflecting a slight 1.1% dip from the previous year. Despite this, its long-term performance remained steady, supported by $12.1 billion in structural cost savings since 2019. These efforts have helped offset inflation and expansion costs while enabling it to outperform industry peers. For 2024, the company recorded a sector-leading return on capital employed at 12.7%, with a five-year average of 10.8%.

With a strong cash flow position, Exxon Mobil Corporation (NYSE:XOM) stands out as a reliable dividend payer. It generated $55 billion in operating cash flow during 2024, marking its third-strongest year in the past decade. For Q4 alone, operating cash flow reached $12.2 billion, while free cash flow totaled $8 billion. The company returned $36 billion to shareholders in 2024, including $16.7 billion in dividend payments.

Exxon Mobil Corporation (NYSE:XOM) boasts a rich dividend legacy, having paid shareholders for 143 consecutive years and growing its dividend consistently for the past 42 years. Currently, it pays a quarterly dividend of $0.99 per share and has a dividend yield of 3.84%, as of April 12.