Exxon Mobil Corporation (XOM): Safe Haven for Oil Dividend Investors During the Oil Crash

This combination of laser-like focus on cost controls, along with the best economies of scale, have resulted in an impressive track record of industry leading profitability.

Exxon Mobil XOM Dividend Safe

Better yet, management is well aware that Exxon’s shareholder base is dividend and dividend growth focused. And since this is a highly cyclical industry, the key to long-term dividend growth over time is using the windfall profits of the boom times to return capital to shareholders in the form of large buybacks that bring down the share count over time.

Exxon Mobil XOM Dividend Safe

By reducing the share count by 2.6% per year over the past five years, Exxon decreased its dividend burden and helped keep the payout ratio, allowing for more secure dividends during the lean times. Better yet, it also helps Exxon to generate far better long-term dividend growth than its rivals.

Exxon Mobil XOM Dividend Safe

Overall, Exxon’s capital discipline, quality assets, integrated operations, diverse resource base, and scale will continue to serve the company well for many years to come.