Why Exxon Mobil (XOM) Remains a Top Pick for Consistent Dividends in the Energy Sector

Exxon Mobil Corporation (NYSE:XOM) is included among the 13 Best Consistent Dividend Stocks to Buy Now.

Exxon Mobil Corporation (NYSE:XOM), an American oil giant, has gained only about 5% so far this year. Even so, its solid growth strategy and commitment to rewarding shareholders make it stand out as an appealing long-term bet in today’s market.

Exxon Mobil Corporation (NYSE:XOM) has laid out an ambitious roadmap for the years ahead. Its investment approach could potentially boost earnings by $20 billion and cash flow by $30 billion by 2030. That translates into a targeted compound annual growth rate of around 10% for earnings and 8% for cash flow over the coming years.

At the core of this strategy is a plan to commit roughly $140 billion toward large-scale capital projects and expansion in the Permian Basin. Exxon Mobil Corporation (NYSE:XOM) expects these efforts could generate lifetime returns of more than 30%. The focus remains on directing capital toward advantaged resources with lower costs and stronger margins, including major projects in Guyana, LNG, and the Permian Basin.

On August 13, Exxon Mobil Corporation (NYSE:XOM) declared a quarterly dividend of $0.99 per share, which was in line with its previous dividend. Overall, the company has raised its payouts for 42 consecutive years, which makes it one of the best dividend stocks with consistent payouts. The stock has a dividend yield of 3.52%, as of September 12.

While we acknowledge the potential of XOM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Dividend Stocks to Buy for Retirement and 10 Best Strong Buy Dividend Stocks to Invest in Now.

Disclosure: None.