11 Undervalued Dividend Aristocrats to Buy Now

4. Exxon Mobil Corporation (NYSE:XOM)

Forward P/E Ratio as of May 7: 13.44

Exxon Mobil Corporation (NYSE:XOM) ranks fourth on our list of the best undervalued dividend aristocrat stocks. The American multinational oil and gas company oversees a top-tier portfolio of resources and stands as one of the largest global players in integrated fuels, lubricants, and chemicals. It runs facilities and markets its products worldwide, while also engaging in oil and natural gas exploration across six continents.

In the first quarter of 2025, Exxon Mobil Corporation (NYSE:XOM) reported revenue of $83.1 billion, up modestly by 0.06% from the same period last year. The revenue missed analysts’ estimates by $3 million. However, its EPS of $1.76 exceeded consensus by $0.02. Since 2019, the company has made strategic decisions to cut costs, increase high-value volumes, and optimize its operations, boosting its quarterly earnings by approximately $4 billion based on current prices and margins. This year, the company is launching 10 advantageous projects, which are expected to generate over $3 billion in earnings by 2026, assuming constant prices and margins.

Exxon Mobil Corporation (NYSE:XOM) reported operating cash flow of $13.0 billion and free cash flow of $8.8 billion. It distributed $9.1 billion to shareholders, comprising $4.3 billion in dividends and $4.8 billion in share repurchases, in line with its previously announced plans. The company’s quarterly dividend is $0.99 per share and offers a dividend yield of 3.73%, as of May 7. It is one of the best dividend aristocrat stocks, having raised its payouts for 41 consecutive years.