Is Exxon’s (XOM) Dividend Safe and Worth It for Halal Investors?

Exxon Mobil Corporation (NYSE:XOM) is included among the 11 Best Halal Dividend Stocks to Buy Now.

Is Exxon’s (XOM) Dividend Safe and Worth It for Halal Investors?

Aerial view of a major oil rig in the middle of the sea, pumping crude oil.

Exxon Mobil Corporation (NYSE:XOM)’s broad international presence and varied operations make it a strong contender for investors interested in the energy sector. Its business spans multiple countries, including the US, Indonesia, Guyana, Papua New Guinea, and Qatar.

Beyond its global footprint, Exxon Mobil Corporation (NYSE:XOM) also benefits from multiple sources of income. Its upstream segment is involved in energy exploration and development, while its downstream operations handle refining and the sale of fuel, lubricants, and other petrochemical products. This makes it one of the most reliable dividend stocks.

Exxon Mobil Corporation (NYSE:XOM)’s reliable and steadily growing dividend has been driven by two main factors. First, the company operates with an integrated business model that relies on high-quality assets that are both low-cost and high-margin. This setup allows it to generate more stable cash flow than many of its competitors. Second, Exxon has a very strong balance sheet with the lowest leverage ratio among similar companies. This financial strength gives it the flexibility to borrow during times of lower oil prices to support growth and then pay down that debt when prices improve.

Exxon Mobil Corporation (NYSE:XOM) currently pays a quarterly dividend of $0.99 per share and has a dividend yield of 3.67%, as of July 18. It is among the best halal dividend stocks as the company has raised its payouts for 42 consecutive years.

While we acknowledge the potential of XOM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XOM and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.