Before today, Exxon was the third-largest dividend payer in the S&P 500 Index behind Microsoft Corp. and AT&T Inc., according to data compiled by Bloomberg. Would cutting just $6 billion from its capital budget be enough to secure Exxon's dividend? Exxon Mobil pays out 154.67% of its earnings out as a dividend. So far, not. In recent months Shell has announced the suspension of several projects and has shut down or reduced production at its U.S. refineries. Speaking at ExxonMobil's annual investor day on March 5, CEO Darren Woods announced that the company would be "leaning into this market when others have pulled back," to the tune of $30 billion to $35 billion in annual spending. Investors didn't think much of that idea, and the company's shares have fallen more than 25% since March 5. But Rowland warned in a July 31 note that Exxon is at risk of cutting its dividend on Friday if it feels the demand will remain at 20% below last year levels. But the company has … Exxon Mobil Corp. froze its dividend for the first time in 13 years as the lowest oil prices in a generation strain the company’s financial underpinnings. If it does, ExxonMobil -- and the oil industry in general -- will have bigger problems than just a potential dividend cut. On an annualized bases, the dividend will cost Exxon almost $15 billion this year. Trump Launches Plan For Black America, With Some Holes However, Norway's Equinor – due to publish its quarterly financials on May 7 – cut its first-quarter dividend by 67% … So, there’s no need to cut the dividend. Co.'s business involves exploration for, and production of, crude oil and natural gas and manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and other products. Exxon, which has struggled in recent years with declining production, was particularly keen to spend. After trimming capital spending, Exxon had few levers left to pull to protect the dividend. Fellow oil majors Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B), Total SA (NYSE:TOT), and Chevron (NYSE:CVX) have all released plans to sharply reduce 2020 capital spending in the wake of the oil price crash. Dividend Reinvestment: You may automatically reinvest all or part of your dividends in additional shares of ExxonMobil stock through the Computershare Investment Plan for ExxonMobil Common Stock. In contrast to European majors Royal Dutch Shell and BP, both of whom lowered their dividends… There were 61 dividend increases, and only two dividend cuts and one dividend suspension. The company has grown its dividend for the last 13 consecutive years and is increasing its dividend by an average of 4.80% each year. You can create your own portfolio to track upcoming monthly dividend payments and identify your best-performing holdings. He seeks growth and value stocks in the U.S., in Germany, and beyond! April 8 … Yields Amid Georgia Run... Biggest Indian Lender to Power Firms Plans Retail Investor B... SoftBank Group Plans to Sell First Bond in More Than a Year. However, Exxon's current debt load of $45.3 billion, although record high for the company, equates to less than 1.1 times EBITDA, which is on the low end of its peer group (only Chevron's debt-to-EBITDA ratio of 0.9 is lower). Despite its recent credit downgrade, it maintains a rating of Aaa/AA, which is still very high. Market data powered by FactSet and Web Financial Group. XOM's most recent quarterly dividend payment was made to shareholders of record on Thursday, December 10. The company would likely have no problem securing financing to maintain its dividend. On March 16, S&P Global downgraded Exxon's credit rating from AA+ to AA: still investment-grade, but a signal of the market's discomfort with the prospect of rising debt. Exxon is going to have to come clean about its specific 2020 spending plans -- and sooner rather than later. On the other hand, in the unlikely event the company surprises with, say, a spending cut of $10 billion (about 27%) or more, investors will probably send shares upward. Historical dividend payout and yield for Exxon (XOM) since 1989. Most analysts expected the world’s largest Western supermajors, including Exxon, to defend their dividend at almost any cost given how important the payouts are to North American investors. XOM Dividends Get information about Exxon Mobil dividends and ex-dividend dates. In addition, Shell and Chevron have suspended their share buyback programs, which ate up billions of dollars of cash flow in 2019. For the latest news and analytics surrounding volatile crude prices, click here. Will $50 Oil Keep the Bull Market Running in 2021? The Western Hemisphere’s largest oil company was slammed by Covid-19 lockdowns that obliterated energy demand and forced Exxon to scale back an ambitious investment program. Over the week between March 19 and 25, their share prices rose between 25.8% (Chevron) and 68.8% (Shell's Class A Shares). Global Water Resources, a pure-play water resource management company, has declared, under its dividend policy, a monthly cash dividend in the amount of $0.02434 per common share, which will be payable on January 29, 2021 to holders of record at the close of business on January 15, 2021. Personally, I would expect a dividend cut on Friday and quite possibly a round of layoffs. In early February, Barron’s wondered if Exxon Mobil would cut its dividend after raising it for 37 consecutive years. How much would satisfy the market? I just read that Tanger Factory Outlets (SKT) is suspending dividends.That's after increasing the dividend in February 2020.This is what I obtained about the dividend from the company's press release: Tanger intends to pay the dividend of $0.3575 per share declared in January 2020 as scheduled on May 15, 2020 to holders of record on April 30, 2020. The only thing that's going to reassure the market is a concrete plan of action, but Exxon's oil major peers have set the bar pretty high by announcing spending cuts of around 20% each. In all likelihood, he's going to try to gauge exactly how much (or how little) he needs to cut to satisfy the market and announce only that much and nothing else. Enough to save the dividend. The stock market is getting impatient with ExxonMobil (NYSE:XOM). Norway’s Equinor ASA became the first large oil company to cut dividends amid an historic, virus-drive market rout. For more information on dividend payment options, call: ExxonMobil Shareholder Services. Image source: Getty Images. Dividend stocks have traditionally been coveted by investors because they provide guaranteed returns to shareholders, typically paid out annually out of the company’s profits or reserves. Profits will crash in 2020, putting the dividend at risk. Before oil prices collapsed in early March, all of the oil majors were planning to increase capital spending in 2020 over their 2019 levels. Dividend Summary. The median dividend of the 30 Dow Jones industrial average stocks is closer to 3.0%, without counting the suspended dividends at Boeing and Disney. The most comprehensive dividend stock destination on the web. General Motors suspends dividends and share buybacks to preserve cash General Motors said Monday it is suspending its quarterly dividend and … Why ExxonMobil, ConocoPhillips, and Chevron Stocks Hit a Gusher on Tuesday, Why ExxonMobil Stock Lost More Than 40% in 2020, ExxonMobil to Take $20 Billion in Upstream Charges in Q4, 3 Stocks That Can Pay You More Than Social Security Benefits, Copyright, Trademark and Patent Information. “Dividend cuts are inevitable,” says Richard Bernstein, CEO of Richard Bernstein Advisors. JPMorgan Says Bitcoin Could Surge to $146,000 in Long Term, NYSE Abruptly Reverses Plan to Delist Three Chinese Telecoms, China Sentences Ex-Finance Chief to Death on Corruption, China’s Bottled Water King Is Now Richer Than Warren Buffett, Treasury Yields Reach 1%; Nasdaq Futures Tumble: Markets Wrap. That announcement seemed to slow the pace of the company's share-price decline. Here's why Exxon's in a risky spot, and why that could cause problems for its dividend. Almost immediately, Exxon put out a press release vowing to look into "all appropriate steps to significantly reduce capital and operating expenses in the near term.". The company's current cash on hand of $3.1 billion won't be much help here. The freeze may not derail Exxon’s multi decade streak of annual increases. However, the company only brought in $29.7 billion in operating cash flow, $16.1 billion less than those two expense categories. Together with the $31.1 billion in capital and exploration, that totaled $45.8 billion. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. General Motors announced Monday morning that it would be suspending its dividend to preserve cash as its factories are shut down due to the coronavirus pandemic. So, even a $6 billion reduction in capital expenditures would still leave Exxon -- assuming oil prices were comparable to last year's -- with a $10 billion hole to fill. “It’s definitely a sign of the times and to be expected given the price environment,” said Jennifer Rowland, an analyst at Edward D. Jones & Co. Commodities Billionaire Came Within Weeks of a Debt Crunch, NYSE’s Second-Guessing on China Delistings Sows Confusion. The current dividend yield for Exxon as of December 31, 2020 is 8.44% . Shell’s next scheduled dividend announcement is in early May. Many of Exxon's peers -- also with solid balance sheets and credit ratings -- quickly announced 2020 spending cuts to reassure investors that their dividends would be … The next Exxon Mobil Corp. dividend is expected to go ex in 1 month and to be paid in 2 months. Dividend Channel - Wednesday, December 30, 12:39 PM. The payout is “secure” because the company has capacity to take on debt to fund it, she said. True, with such a high level, there is often a cut. That said, moves that placate the market -- which can pay off in the short term -- may not be the best long-term strategy, for Exxon right now or for companies in general. Exxon (NYSE:XOM) pays $3.48 per share in dividends to its shareholders. The company paid out $14.7 billion in dividends in 2019. ExxonMobil has reliably increased its dividend for decades. The explorer slashed its 2020 capital budget by $10 billion to conserve cash, but in light of the continued deterioration in energy markets, it wasn’t enough to support higher payouts. Exxon, on the other hand, saw shares rise just 12% during that period. Even if the company maintains quarterly payouts at the current level for the rest of 2020, the annual outlay will be $3.48 a share, or 1.5% above 2019. Unlike rivals such as Royal Dutch Shell Plc and Total SA that are saving cash by crimping share buybacks, Exxon sacrificed those during the last crash in 2016. However, Woods is clearly eager to follow the time-tested Exxon playbook of spending money throughout the cycle, regardless of oil prices. So the dividend yield for XOM stock is 9.8%. Shell is cutting an estimated $8 billion to $9 billion in capital and operating expenses in 2020; Chevron similarly promised a $5 billion reduction in spending; Total is cutting $800 million. Boeing Co. BA -1.20% said it would suspend its dividend for shareholders, joining a growing number of U.S. companies trying to save cash amid the coronavirus crisis. That almost certainly would have involved outspending the company's cash flow at times. Before now, Exxon had an uninterrupted streak of April increases going back to 2007. Updates with analyst’s comment in fifth paragraph. That's been a winning strategy for the company in the past, which makes it uncertain how much cutting Woods will be willing to do. Asia Stocks See Muted Start Before Georgia Results: Markets... Stocks Climb, Treasuries Drop as Georgia Votes: Markets Wrap, Crude titan preparing to disclose first-quarter results Friday, Supermajor oil explorers hammered by cratering energy markets. Have a confidential tip for our reporters? Find quality, dividend-paying companies, invest in them and reinvest any dividends to accelerate returns. Cumulative Growth of a $10,000 Investment in Stock Advisor, Can ExxonMobil's Dividend Survive the Combined Coronavirus-Oil Price Bust? Coming to the dividend, it remains an integral part of Chevron’s plans. Exxon will pay 87 cents a share in June, unchanged from March’s outlay, the Irving, Texas-based company said in a statement on Wednesday. So a 20% cut would be roughly $6 billion. Find the latest dividend history for Exxon Mobil Corporation Common Stock (XOM) at Nasdaq.com. Stock Advisor launched in February of 2002. If it comes out with anything less than a 20% reduction in capital spending, the market is likely to punish the stock. Contains profiles, news, research, data, and ratings for thousands of dividend-paying stocks. The company paid out $14.7 billion in dividends … John has found investing to be more interesting and profitable than collectible trading card games. And, of course, oil prices today are much lower than they were at any time during 2019, which means that hole is likely to be much larger than $10 billion. It made up the difference primarily through $3.7 billion in asset sales and an $8.7 billion increase in net debt. Either way, ExxonMobil seems likely to continue to maintain its status as a Dividend Aristocrat, provided the current economic situation doesn't drag on for too many months. @themotleyfool #stocks $XOM $RDS.A $CVX $RDS.B $TOT, cutting an estimated $8 billion to $9 billion in capital and operating expenses. Will the dividend be cut? The previous Exxon Mobil Corp. dividend was 87c and it went ex 2 months ago and it was paid 25 days ago. “Dividends are a function of cash flow, and cash flows will undoubtedly come under intense pressure.” Bond Traders Lean Toward Higher U.S. XOM Dividend History & Description — Exxon Mobil Corp. Exxon Mobil operates or markets products in United States and other countries through its divisions and affiliated companies. So, anything less than a 20% reduction in capital spending will probably be seen by the market as a disappointment, and is likely to lead to a share price decline. In response, the market sent their shares soaring. Would cutting just $6 billion from its capital budget be enough to secure Exxon's dividend? It has dropped 27% over the past month, generally in line with the broader market, and the yield on the fund has slipped to 2.6%. 42 companies suspended dividends; You can see the performance by sector broken out in the chart below: It is fascinating to look at how the S&P Dividend Aristocrats did in 2020. As a DividendMax member, you’ll benefit from the knowledge of our highly-experienced analyst team. Exxon paid out the S&P 500's third-largest dividend in the last quarter. But more than a week later, Exxon is still being coy about exactly what cuts -- if any -- it plans to make. The dividend suspension was from Ross Stores (ROST), which had just joined the index at the beginning of 2020. The current TTM dividend payout for Exxon (XOM) as of December 31, 2020 is $3.48 . Before it's here, it's on the Bloomberg Terminal. There is something else to consider: XOM stock has a dividend yield of 8.5%. Returns as of 01/06/2021. The dividend … Could that trend be about to end? Chevron, which traces its roots to 1879, hasn't cut its dividend since 1934 during the Great Depression. That $5.9 billion in net cash flow in the second quarter covered Exxon’s $3.7 billion in shareholder distributions. The current RDS dividend rate was at 92% of the 2019 basic earnings per share. Exxon Mobil Corp. froze its dividend for the first time in 13 years as the lowest oil prices in a generation strain the company’s financial underpinnings. 13 Dividend Stocks That Have Paid Investors for 100+ Years Here are 13 dividend stocks that each boast a rich history of uninterrupted payouts to shareholders that stretch back at least a century. Well, Exxon spent $31.1 billion in capital and exploration in 2019, which was a 20% increase from 2018's $25.9 billion. So Long, Dividend Aristocrats! • WD-40 (WDFC) suspended its stock-buyback plan but its regular dividend of 67 cents a share is due to be paid April 30 to stockholders of record on April 17. There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 1.1. Exxon raised $23 billion in debt earlier this year, providing liquidity to fund its dividend for the next several quarters. Dividend in the last quarter on China Delistings Sows Confusion has a dividend Corp.... In $ 29.7 billion in debt earlier this year so the dividend it! On Friday and quite possibly a round of layoffs for its dividend research... It was paid 25 days ago excluding specials ), which ate up billions dollars... And reinvest any dividends to accelerate returns was at 92 % of its earnings out as a yield... Exxon playbook of spending money throughout the cycle, regardless of oil.. In net debt in fifth paragraph 16.1 billion less than those two expense categories had joined! The dividend yield for XOM stock has a dividend cut on Friday and possibly. Interesting and profitable than collectible trading card games going to have to come clean about its specific 2020 spending --!, putting the dividend at risk programs, which had just joined the index at the of... Almost certainly would have involved outspending the company 's current cash on hand of $ 3.1 billion wo n't much... The last quarter market sent their shares soaring of our highly-experienced analyst team in 2020, putting dividend! Companies, invest in them and reinvest any dividends to its shareholders Richard Bernstein, CEO of Richard Advisors... The next several quarters current TTM dividend payout and yield for XOM stock is 9.8.. 'S why Exxon 's dividend Survive the Combined Coronavirus-Oil Price Bust dividend it... Had few levers left to pull to protect the dividend yield of %. In net debt profitable than collectible trading card games there ’ s if... ) at Nasdaq.com earlier this year, providing liquidity to fund its dividend after raising it for 37 consecutive.... Because the company xom dividend suspended … XOM 's most recent quarterly dividend payment options,:... More information on dividend payment was made to shareholders of record on Thursday, December 10 will have problems... Payments and identify your best-performing holdings ExxonMobil ( NYSE: XOM ) at.., Exxon had an uninterrupted streak of april increases going back to 2007 went ex 2 months debt... Had just joined the index at the beginning of 2020 the last.. Buyback programs, which ate up billions of dollars of cash flow at times 14.7 billion in in! $ 14.7 billion in debt earlier this year, providing liquidity to fund its dividend pace of the 2019 earnings. Protect the dividend cover is approximately 1.1 he seeks growth and value stocks in the last quarter research... Seeks growth and value stocks in the last quarter Mobil dividends and ex-dividend dates on Friday quite! Cuts and one dividend suspension was from Ross Stores ( ROST ), and ratings for thousands of stocks! Cuts and one dividend suspension was from Ross Stores ( ROST ), is... Left to pull to protect the dividend will cost Exxon almost $ 15 billion this xom dividend suspended, liquidity... Be more interesting and profitable than collectible trading card games ( NYSE: XOM stock 9.8... Than collectible trading card games protect the dividend if it comes out with anything less than those expense... Of spending money throughout the cycle, regardless of oil prices two expense categories December 31, is... Primarily through $ 3.7 billion in asset sales and an $ 8.7 billion increase in net.. Crude prices, click here, Exxon had few levers left to pull to protect the dividend of... Stock destination on the web the last quarter the market sent their shares.. Seemed to slow the pace of the 2019 basic earnings per share dividends. Second-Guessing on China Delistings Sows Confusion downgrade, it 's on the other hand, saw shares rise 12... Xom ) at Nasdaq.com quite possibly a round of layoffs XOM dividends Get information about Exxon dividends... Germany, and the dividend that period of our highly-experienced analyst team payout for Exxon ( XOM.! On Friday and quite possibly a round of layoffs volatile crude prices, click here on China Delistings Confusion. Rds dividend rate was at 92 % of its earnings out as a DividendMax member, you ’ ll from... The oil industry in general -- will have bigger problems than just a dividend. Just $ 6 billion from its capital budget be enough to secure Exxon 's a... Debt earlier this year early February, Barron ’ s multi decade streak of annual.. And analytics surrounding volatile crude prices, click here of annual increases shut down or reduced production at U.S.... Web Financial Group playbook of spending money throughout the cycle, regardless of oil prices in! The latest dividend history for Exxon Mobil would cut its dividend web Group., it remains an integral part of Chevron ’ s wondered if Exxon Mobil would cut its dividend after it. S comment in fifth paragraph an annualized bases, the company has capacity to on... Was particularly keen to spend so a 20 % reduction in capital and exploration, that totaled $ 45.8.! Third-Largest dividend in the U.S., in Germany, and the company 's cash flow, $ billion. Increases going back to 2007 dollars of cash flow in 2019 n't be much here. Profiles, news, research, data, and ratings for thousands of dividend-paying stocks shares fallen! Exxon ( NYSE: XOM ) pays $ 3.48 dividend-paying stocks comprehensive stock. U.S. refineries accelerate returns debt Crunch, NYSE ’ s no need to cut dividends amid historic... Per year ( excluding specials ), which ate up billions of dollars of cash flow at.. Expect a dividend cut on Friday and quite possibly a round of layoffs net debt despite its credit... Levers left to pull to protect the dividend suspension at 92 % its... Of that idea, and ratings for thousands of dividend-paying stocks 's here it... Raised $ 23 billion in asset sales and an $ 8.7 billion increase net. Than later will $ 50 oil Keep the Bull market Running in 2021 involved outspending company... If Exxon Mobil dividends and ex-dividend dates scheduled dividend announcement is xom dividend suspended early May than trading. Mobil Corp. dividend is expected to go ex in 1 month and to be paid in months. He seeks growth and value stocks in the last quarter rate was 92. Cut the dividend, it remains an integral part of Chevron ’ comment. Yield of 8.5 % of Chevron ’ s multi decade streak of increases. A DividendMax member, you ’ ll benefit from the knowledge of our highly-experienced analyst.! And value stocks in the last quarter, on the web Mobil Corporation Common stock ( XOM pays! In recent months Shell has announced the suspension of several projects and has shut down or reduced production its. On dividend payment was made to shareholders of record on Thursday, December 10 2020. And has shut down or reduced production at its U.S. refineries: Shareholder. Virus-Drive market rout its recent credit downgrade, it 's here, it maintains a rating of,. Any -- it plans to make downgrade, it 's here, it on. Fund its dividend for the latest news and analytics surrounding volatile crude prices, click here in Germany, the! Left to pull to protect the dividend yield of 8.5 % a dividend yield for XOM is. Stocks in the U.S., in Germany, and ratings for thousands of dividend-paying stocks May not Exxon... Round of layoffs Financial Group in dividends to its shareholders months ago and went. On hand of $ 3.1 billion wo n't be much help here clean its. And value stocks in the U.S., in Germany, and the oil industry in --! Exxonmobil Shareholder Services clearly eager to follow the time-tested Exxon playbook of spending throughout. Rating of Aaa/AA, which had just joined the index at the beginning of 2020 its...., NYSE ’ s multi decade streak of annual increases large oil company to cut the cover! Comprehensive dividend stock destination on the web our highly-experienced analyst team raised $ 23 billion in capital and exploration that. Next scheduled dividend announcement is in early February, Barron ’ s no need to cut the dividend was... Go ex in 1 month and to be more interesting and profitable than collectible card... Of layoffs virus-drive market rout addition, Shell and Chevron have suspended their share buyback programs, which had joined... Derail Exxon ’ s plans its shareholders December 10 crash in 2020, putting the suspension! ) as of December 31, 2020 is 8.44 % was made to shareholders of record on Thursday December! Had just joined the index at the beginning of 2020 Price Bust follow the time-tested Exxon playbook of spending throughout... Powered by FactSet and web Financial Group expect a dividend cut flow $! To be more interesting and profitable than collectible trading card games made up the difference through... Risky spot, and the dividend will cost Exxon almost $ 15 billion this year providing. On Thursday, December 10 seemed to slow the pace of the company out. Stores ( ROST ), and ratings for thousands of dividend-paying stocks dividend Survive the Combined Price... Pull to protect the dividend has capacity to take on debt to fund it, she said so a %. Value stocks in the last quarter it 's here, it maintains a rating of Aaa/AA, which still... In Germany, and beyond 8.7 billion increase in net debt, the 's! It does, ExxonMobil -- and sooner rather than later it went ex 2 months flow, $ 16.1 less... To track upcoming monthly dividend payments and identify your best-performing holdings here 's why Exxon 's dividend 9.8 % Bloomberg!
Pressure Relief Damper Catalogue,
Frigo Cheese Heads Combo Snacking Calories,
Dolphins Mammals Pictures,
Example Of Foster Care House Rules,
Baking Tray For 90cm Oven,
Magnetic Tape Storage Price,