25 Best Dividend Aristocrats to Buy According to Analysts

6. Exxon Mobil Corporation (NYSE:XOM)

Upside Potential as of May 26: 20.8%

Another energy company that made it to our list of the best dividend aristocrat stocks is Exxon Mobil Corporation (NYSE:XOM). The company’s dividend growth streak currently spans over 41 years and it pays a quarterly dividend of $0.95 per share. The stock has a dividend yield of 3.35%, as of May 26. It remained committed to its shareholder return in the first quarter of 2024, distributing $4 billion to investors through dividends.

As one of the largest publicly-traded energy companies that also pays a solid and consistent dividend, Exxon Mobil Corporation (NYSE:XOM) is one of the best picks for investors looking for a stable income stream. The company is expanding its production capacity and has recently completed the acquisition of Pioneer Natural Resources, which vastly expands its presence in the Delaware and Midland basins to 1.4 million acres. Despite the downward pressure from oversupply, the oil prices still remain range-bounded mainly on the back of geopolitical tensions around the world. The recent dip in prices caused by the recent announcement of OPEC+ (an organization consisting of several oil-exporting countries) to boost supply later this year is being brushed off by analysts as an overreaction. However, major catalysts to drive the prices higher also do not appear on the horizon.

Even though oil prices are far from their highs seen a few years ago, they are still above break-even points for Exxon Mobil Corporation (NYSE:XOM) production locations (which are estimated at around $35 per barrel).  Moreover, Exxon Mobil Corporation (NYSE:XOM) has little debt (around $40 billion in debt) and it’s free cash flow of $33 billion, combined with a debt to EBITDA of 0.58 suggest that debt should be of no concern to shareholders.

On the other hand, Ken Fisher has expressed optimism about the energy sector in 2024, expecting an increase in oil prices that would eventually lead to a rise in energy stocks. In the first quarter of 2024, Fisher Asset Management remained bullish on energy stocks, especially Exxon Mobil Corporation (NYSE:XOM), growing its stake in the company by 101%.

According to Insider Monkey’s database of Q1 2024, 81 hedge funds owned stakes in Exxon Mobil Corporation (NYSE:XOM), compared with 85 in the previous quarter. The overall value of these stakes is more than $5.5 billion. Among these hedge funds, Fisher Asset Management was the company’s leading stakeholder in Q1.