Dividend Safety in the Oil & Gas Giants: Exxon Mobil Corporation (XOM), Chevron Corporation (CVX), Occidental Petroleum Corporation (OXY)

Page 1 of 2

There’s no doubt that one of the most stable industries out there is that of the integrated oil and gas firms. These companies are highly profitable and tend to pay some of the highest dividends in the market. The three stocks highlighted in this article are U.S. traded and major players in the oil and gas space.

So, why these three? Well, each one has an annual dividend growth rate that has exceeded 10% over the past five years. That means that while paying pretty good dividends, they are continuing to grow them. These companies also have relatively small payout ratios; we don’t want to be buying into a company that can’t possibly sustain its payouts, so a low ratio is great for us.

Exxon Mobil Corporation (NYSE:XOM)The three companies that we’ll take a look at in this article are Exxon Mobil Corporation (NYSE:XOM), Occidental Petroleum Corporation (NYSE:OXY) and Chevron Corporation (NYSE:CVX). These three companies meet the outlined criteria above, and they also happen to be among the best of the integrated oil and gas companies. Let’s take a look at them individually.

The TITAN

Exxon Mobil Corporation (NYSE:XOM) is quite clearly the titan of the field. This company has a long standing record in American history and is currently battling with Apple Inc. (NASDAQ:AAPL) over the top market cap spot. Now, let’s get to the meat of it: Why is Exxon Mobil on this list? Probably because of their 10.2% annual dividend growth rate–that’s a pretty solid number and is something that any dividend investor would love to see.

The current yield on XOM stock is 2.55%, and that’s with a 9.2 P/E ratio. Exxon Mobil Corporation (NYSE:XOM) has a very low payout ratio that sits right around the 22% mark, a number that indicates that Exxon has the capability to increase the dividend more over the coming years. Another number I like at the company? How about price to sales. It’s at 0.84. Sub-one numbers aren’t uncommon in the oil and gas industry, but at least you’re paying less than one year’s sales for the company.

When compared to other companies, Exxon Mobil Corporation (NYSE:XOM) does have a price to book value that is a bit on the high side at 2.45. This obviously comes about because of the name recognition that Exxon brings along with it. If you’re looking for a company that’s right around the 1.00 mark then you should check out BP plc (ADR) (NYSE:BP); they’re sitting at 1.09 at the time of writing.

Another Rockefeller Entry

Whether you like it or not, J.D. Rockefeller has his name everywhere in the oil and gas industry. His standard oil company is the founding basis for many current oil companies, and Chevron Corporation (NYSE:CVX) is no exception. Chevron made it onto this list of top companies by increasing their dividend by an average annual rate of 13.93% over the last five years, beating out Exxon but leaving room for our number three stock!

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 9 Most Dangerous Countries for Tourists to Visit

Reign of Terror: The 10 Most Ruthless Politicians in History

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!