15 Best Stocks For Dividends

2. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 81

Exxon Mobil Corporation (NYSE:XOM) is an American multinational oil and natural gas company. The company managed to stabilize its financial position through several years of profitability. In the first quarter of 2024, the company generated over $10 billion in free cash flow, surpassing analysts’ expectations by 21%. Its operating cash flow for the quarter amounted to $14.7 billion. Achieving a $10 billion increase in cash flow represents a significant return on the company’s $94 billion capital expenditures since 2019. Despite reducing capital spending by 8.5% compared to the previous year, Exxon Mobil Corporation (NYSE:XOM) returned $6.8 billion to shareholders through dividends and share repurchases. Additionally, it allocated $5.8 billion toward capital and exploration expenditures. With its strong cash generation and commitment to shareholder returns, the company remains a highly dependable choice for income investors.

Another reason that makes Exxon Mobil Corporation (NYSE:XOM) popular among investors is its modest debt level of approximately $40 billion and strong free cash flow amounting to $33 billion. With a debt-to-EBITDA ratio of 0.58, the company’s debt is manageable and not a significant concern for shareholders. The stock is currently trading at a forward price-to-earnings ratio of 12.44, which seems attractively priced considering the company’s solid cash reserves, recent earnings performance, and growth prospects.

Exxon Mobil Corporation (NYSE:XOM), one of the best stocks for dividends, has never missed a dividend payment in 142 years. Moreover, the company maintains a 41-year streak of consistent dividend growth. The company offers a quarterly dividend of $0.95 per share and has a dividend yield of 3.30%, as of July 15.

Exxon Mobil Corporation (NYSE:XOM) was included in 81 hedge fund portfolios at the end of Q1 2024, compared with 85 in the previous quarter, according to Insider Monkey’s database. The stakes held by these hedge funds have a consolidated value of over $5.5 billion.