5 Best Energy Dividend Stocks to Buy Now

3. Exxon Mobil Corporation (NYSE:XOM)

Dividend Yield as of October 23: 3.33%

Exxon Mobil Corporation (NYSE:XOM) is one of America’s leading energy companies which sells its products worldwide. The company’s shareholder return remain strong in its most recent quarter as it generated $17 billion in free cash flow and distributed $3.7 billion in dividends. This takes the company’s payout ratio to 38.4%.

Exxon Mobil Corporation (NYSE:XOM) has been growing its dividends consistently for 39 years, which makes it one of the best dividend stocks from the energy sector. Over these years, the company has raised its dividends at a CAGR of 6%. It currently pays a quarterly dividend of $0.80 per share and has a dividend yield of 3.33%, as of October 23.

In October, Jefferies upgraded Exxon Mobil Corporation (NYSE:XOM) to Buy while lifting the stock’s price target to $133. The firm appreciated the company’s investment throughout the cycle which would lead to growth in its segments.

At the end of Q2 2022, 72 hedge funds tracked by Insider Monkey owned stakes in Exxon Mobil Corporation (NYSE:XOM), compared with 83 in the previous quarter. The collective value of these stakes is over $7.4 billion. GQG Partners was the company’s leading stakeholder in Q2.

First Eagle Investments mentioned Exxon Mobil Corporation (NYSE:XOM) in its Q2 2022 investor letter. Here is what the firm has to say:

“Integrated oil and gas giant Exxon Mobil performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industrywide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”