5 Best Vanguard Dividend Stocks with High Yields

3. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 71

Dividend Yield (as of May 17): 3.82%

Exxon Mobil Corporation (NYSE:XOM) is an energy firm which deals in the exploration of crude oil and natural gas in the United States and around the world. It also develops, transports and stores petrochemicals and other specialty chemicals. It is one of the world’s largest firms by revenue, and offers investors a sustainable 3.82% yield as of May 17.

Argus analyst Bill Selesky on May 9 raised the firm’s price target on Exxon Mobil Corporation (NYSE:XOM) to $104 from $92 and maintained a ‘Buy’ rating on the company shares. He sees further upside potential in the company shares, and expects the firm to benefit from strong fundamentals in the energy market, as well as an improving balance sheet, higher free cash flow and reduced capital spending.

Exxon Mobil Corporation (NYSE:XOM) was popular among hedge funds at the close of Q4 2021, where 71 reported bullish bets on the company shares. This is up from 64 hedge funds a quarter ago, showing an uptick in investor confidence in the company shares.

At the end of the first quarter, Exxon Mobil Corporation (NYSE:XOM) posted EPS of $2.07, which fell below estimates by $0.16. Quarterly revenue of $90.5 billion jumped 53% from the year-ago quarter, and also outperformed estimates by $5.62 billion. As of May 18, Exxon Mobil Corporation (NYSE:XOM) has gained 52.42% in the last 12 months, and 44.80% in the last 6 months.

Here is what investment firm First Eagle Investment Management had to say about Exxon Mobil Corporation (NYSE:XOM) in its Q2 2021 investor letter:

“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. The continued recovery in oil prices as economies reopen helped fuel another strong performance across the energy complex, including shares of Exxon Mobil. Exxon Mobil recently lost a proxy fight with an activist investor that took three of the company’s 12 board seats. While the press was focused on the investor’s concerns over Exxon Mobil’s long term energy transformation strategy, other factors fundamental to shareholder returns—like capital discipline and balance sheet management—were also at play.”