Wednesday, February 1, 2023

Over 100 Years of Dividend-Paying Excellence🎖️

Shield

AN OXFORD CLUB PUBLICATION

Wealthy Retirement

View in browser

SPONSORED

Five Dividend Stocks to Buy Now (FREE INSIDE)

Marc Lichtenfeld - income expert and author of Get Rich with Dividends - is giving away his Ultimate Dividend Package...

Completely free of charge!

Seriously, no credit card required.

Inside, you'll get the names and ticker symbols of his TOP FIVE dividend stocks right now, including...

  • An "A"-rated, ultra-safe dividend stock with a huge 8% yield
  • Three of Marc's favorite "Extreme Dividend" stocks, which could supercharge your income
  • And finally, his No. 1 dividend stock for a LIFETIME of income.

Click here before the download link expires.

Cash Flow Is Gushing for This Blue Chip Dividend Stock

Marc Lichtenfeld, Chief Income Strategist, The Oxford Club

Marc Lichtenfeld

2019 and 2020 were not good for Exxon Mobil (NYSE: XOM)... or the rest of the oil industry.

Oil prices plummeted, famously turning negative for a brief moment. As a result, oil companies' free cash flow evaporated.

Exxon's free cash flow fell by two-thirds in 2019 and was a horrific negative $2.6 billion in 2020. However, oil prices have since reversed and Exxon's free cash flow has rebounded strongly.

Chart: Exxon's Free Cash Flow
 

This year, Exxon's free cash flow is projected to slip to $44.4 billion, a marked decline from last year's $58.4 billion but still sharply above the 2021 total.

Importantly, the company paid $14.9 billion in dividends in 2022, for a payout ratio of just 26%. This year, based on the $44.4 billion in predicted free cash flow, the payout ratio is estimated to be just 34%. While that is a meaningful jump from last year's, it remains well within my comfort level. I like to see companies pay 75% or less of their free cash flow in dividends.

SPONSORED

RETIREMENT ALERT

Debt Bomb
 

US Debt now over $30 Trillion! Discover the IRS loophole that can protect your life's savings before it's too late. GET FREE KIT NOW.

Four Decades and Counting

Exxon's current quarterly dividend is $0.91 per share, giving it a 3.2% yield. It has raised its dividend every year for 40 years.

It has never cut its dividend since it began paying one in 1911. How's that for an impressive dividend-paying history?

Despite free cash flow that is forecast to decline this year, considering Exxon has never reduced its dividend in more than 100 years of paying one and free cash flow will easily cover the dividend, there is very little chance Exxon will cut its dividend in the near future.

Dividend Safety Rating: A

Dividend Grade Guide
 

If you have a stock whose dividend safety you'd like me to analyze, leave the ticker symbol in the comments section.

Also, be sure to see whether I've written about your favorite stock recently. Just click on "Search" at the top right part of the page, type the name of the company and hit enter.

Good investing,

Marc

Leave a Comment
Explore the Wonders of Israel, Jordan and Egypt

Starting February 3, we could find ourselves in the worst financial crisis in 50 years. Are you prepared? Click here for urgent briefing.

Calling All Investors Who Are TIRED of Stocks: Try This Instead

SPONSORED

MASSIVE Sales Record 🚀🚀🚀

Rocket
 

One company just set another massive sales record.

The company brings in more revenue than Netflix or Tesla... yet it trades at a fraction of the price. And there's a very unusual reason. See for yourself here.

No comments:

Post a Comment

Private investors pour $50 billion into booming sector… investment opportunity

Unstoppable megatrend driven by hundreds of billions in government spending ...