13 Best Cheap Dividend Stocks To Buy Right Now

1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 104

Forward P/E Ratio: 13.46

Exxon Mobil Corporation (NYSE:XOM) is one of the largest integrated oil and gas companies in the US. The company’s operations are appealing because they span the entire oil and gas supply chain, covering exploration and production, transportation, and the refining of crude oil into products such as gasoline, diesel, and petrochemicals. This diversified structure provides stability in the often unpredictable energy market. When oil prices are high, the exploration and production segments thrive, while during periods of lower prices, the transportation and refining divisions help offset the impact of market fluctuations.

In the fourth quarter of 2024, Exxon Mobil Corporation (NYSE:XOM) reported revenue of $83.4 billion, representing a slight 1.1% decline compared to the previous year. Since 2019, the company has achieved $12.1 billion in structural cost savings, outperforming its industry peers while helping to mitigate inflationary pressures and expansion costs. For the full year, the company posted the highest return on capital employed in its sector at 12.7%, with a five-year average of 10.8%.

Exxon Mobil Corporation (NYSE:XOM) pays a quarterly dividend of $0.99 per share, offering a yield of 3.68%, as of March 6. The company delivered strong financial results in 2024, generating $55 billion in free cash flow—the third-highest figure in the past decade. Total free cash flow for the year stood at $36.2 billion, with $16.7 billion returned to shareholders through dividends. Exxon remains committed to its $20 billion annual share repurchase program, which is set to continue through 2026, while maintaining a 42-year streak of consecutive dividend increases.

Overall, Exxon Mobil Corporation (NYSE:XOM) ranks first on our list of cheap dividend stocks to buy now. 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.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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