Exxon Mobil Corporation (XOM): Which Dow Stock Ranked No. 1 on 2 Analysts’ Lists?

Also, AT&T Inc. (NYSE:T) has a dividend yield of 4.9%, while Exxon Mobil Corporation (NYSE:XOM) boosts a yield of just 2.8%, and while this may seem like comparing apples to oranges, Chevron Corporation (NYSE:CVX)’s yield is 3.2% and BP plc (ADR) (NYSE:BP)’s dividend yield is 5%. My point behind the dividend yield is that in this time of low interest rates, when people are moving from bonds to stocks in search of high returns, investors need to consider Dan’s calculations of total shareholder return, not just what we receive in dividends.

In the short term, larger dividend payments may seem better to an investor, but if a company continues to buy back shares over a long period of time, investors will be better off, since they’ll now own a larger portion of the business. Furthermore, with fewer shares to pay dividends to, the profits will be split by a smaller number, which would be likely to result in higher dividend payments for each share.

The article Which Dow Stock Ranked No. 1 on 2 Analysts’ Lists? originally appeared on Fool.com.

Fool contributor Matt Thalman owns shares of JPMorgan Chase, Johnson & Johnson, and BP. The Motley Fool recommends Chevron and Johnson & Johnson and owns shares of Johnson & Johnson and JPMorgan Chase.

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