Top 10 Dividend Stocks To Buy According To Hedge Funds

5. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 104

Exxon Mobil Corporation (NYSE:XOM) ranks fifth on our list of the best dividend stocks, with 104 hedge funds in Insider Monkey’s database owning stakes in the American energy company, up from 86 in the preceding quarter.

The company announced late last year that its annual project spending is expected to increase to between $28 billion and $33 billion from 2026 to 2030, aiming to boost oil and gas production by 18%. As a result, the company anticipates an additional $20 billion in earnings and $30 billion in cash flow by the end of the decade, reinforcing its commitment to sustainable, competitive, and growing shareholder returns. In addition, Exxon Mobil Corporation (NYSE:XOM) raised its cost-reduction target to $18 billion by 2030, up from the previous goal of $15 billion by 2027.

In the fourth quarter of 2024, Exxon Mobil Corporation (NYSE:XOM) reported $83.4 billion in revenue, marking a 1.1% decline from the same period a year earlier. Since 2019, it has achieved $12.1 billion in structural cost savings, outpacing industry peers and mitigating the effects of inflation and expansion. For the year, it recorded the highest return on capital employed in its sector at 12.7%, with a five-year average of 10.8%.

In fiscal year 2024, Exxon Mobil Corporation (NYSE:XOM) showcased strong financial performance, generating $55 billion in free cash flow—the third-highest level in the past decade. Total free cash flow for the year reached $36.2 billion, while $16.7 billion was returned to shareholders through dividends. The company also remains committed to its $20 billion annual share repurchase program, which is set to continue through 2026. Moreover, it has maintained a 42-year streak of consecutive dividend increases. The company offers a quarterly dividend of $0.99 per share and has a dividend yield of 3.62%, as of February 25.