ExxonMobil: A Dividend Giant in the Energy Sector

Exxon Mobil Corporation (NYSE:XOM) is one of the Best Dividend Leaders to Buy Now.

The company’s updated 2030 plan targets $20 billion in earnings growth and $30 billion in additional cash flow over five years. It will invest $140 billion in key projects, including $30 billion in low-carbon initiatives and Permian Basin development, aiming for returns above 30%. It also plans to cut $18 billion in structural costs by 2030 compared to 2019.

With strong earnings growth and ongoing cost reductions, Exxon Mobil Corporation (NYSE:XOM) is on track to generate significant excess free cash flow, an estimated $165 billion between 2025 and 2030, after covering capital spending and its current dividend.

The company plans to return much of this surplus to shareholders through higher dividends and stock buybacks. If market conditions remain stable, Exxon Mobil Corporation (NYSE:XOM) expects to repurchase $20 billion in shares this year and another $20 billion in 2026. It has also increased its dividend at a 6% annual rate over the years, a pace it may maintain over the next five years.

Overall, Exxon Mobil Corporation (NYSE:XOM) has raised its dividends for 42 years in a row and currently pays a quarterly dividend of $0.99 per share. As of June 23, the stock has a dividend yield of 3.54%.

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.

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