S&P 500 Dividend Aristocrats List: Sorted By Hedge Fund Sentiment

2. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 92

An American energy company, Exxon Mobil Corporation (NYSE:XOM) ranks second on our list of the best dividend aristocrat stocks. The company has gained popularity among investors for its strong financial stability and consistent profitability over the years, allowing it to distribute substantial dividends to its shareholders. The stock has gained by nearly 16% year-to-date.

In the second quarter of 2024, Exxon Mobil Corporation (NYSE:XOM) reported revenue of $93.06 billion, which showed a 12.24% growth from the same period last year. The company’s solid cash position is a positive indicator, particularly for maintaining and potentially increasing its dividends. It generated $10.6 billion in operating cash flow and its free cash flow for the period came in at $9.5 billion.

Exxon Mobil Corporation (NYSE:XOM) has gained significantly from its acquisitions. On May 3, 2024, ExxonMobil finalized its purchase of Pioneer Natural Resources. The deal involved issuing 545 million shares of ExxonMobil stock, valued at $63 billion at the time, and taking on $5 billion in debt. This merger established the world’s largest high-return unconventional resource development potential. After finalizing the acquisition, the company accelerated its annual share repurchase program to $20 billion through 2025, provided market conditions remain favorable. It aims to buy back over $19 billion worth of shares in 2024.

Exxon Mobil Corporation (NYSE:XOM) declared a quarterly dividend of $0.95 per share on August 2, which fell in line with its previous dividend. The company has been increasing its dividends consistently for the past 41 years, which makes XOM one of the best dividend aristocrat stocks on our list. The stock’s dividend yield on August 19 came in at 3.21%.

The number of hedge funds tracked by Insider Monkey owning stakes in Exxon Mobil Corporation (NYSE:XOM) jumped to 92 in Q2 2024, from 81 in the previous quarter. The consolidated value of these stakes is nearly $6.2 billion.