Stable Dividend Choices in Energy Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: Fool
- ExxonMobil's Dividend Growth: ExxonMobil (XOM) has raised its dividend for 43 consecutive years, supported by a robust balance sheet and a flexible break-even point, with expectations to lower costs to $30 per barrel by 2030, enhancing its competitiveness in the volatile oil and gas sector.
- Stable Capital Returns: In addition to dividend growth, ExxonMobil has returned substantial capital to shareholders through stock buybacks, achieving an 11% return on capital employed over the past five years, outperforming peers by 2%, demonstrating strong financial management.
- Energy Transfer's Gas Demand: Energy Transfer (ET) operates over 140,000 miles of pipeline and is poised to benefit from growing natural gas demand, particularly from data centers and utility companies, as it integrates its network with major hyperscalers.
- Long-Term Contracts Secured: Energy Transfer has secured a deal with Oracle to supply 900 MMcf/d of natural gas and a 20-year agreement with Entergy Louisiana to transport 250 BBtu/d, further solidifying its position in the natural gas market.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 149.930
Low
114.00
Averages
132.17
High
158.00
Current: 149.930
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Shift to Energy Investments: Amidst fatigue in AI-related stocks, some investors are reallocating funds to energy stocks, viewing them as a more reliable long-term investment, although experts caution that restoring Venezuela's oil sector will require years and substantial capital.
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- Lawsuit Background: Exxon filed the lawsuit against Bonta in January 2025, accusing him of making false statements while criticizing the company's advanced plastics recycling initiatives, reflecting the company's aggressive stance against environmental critics, which may affect its brand image.
- Escalating Environmental Controversy: As the lawsuit progresses, Exxon has shown a stronger resistance to environmentalists and critics, which could influence its public image and market performance regarding climate change issues.
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- Political Recognition Complexity: Although the U.S. does not officially recognize the government led by Delcy Rodríguez, Wright indicated that elections and a transition of power may occur during Trump's term, which will influence the U.S.'s ultimate recognition of the Venezuelan government.
- Debt Risk Management: Wright noted that the initial $500 million from oil sales was deposited in Qatar to prevent creditors from freezing the funds, reflecting the immense pressure Venezuela faces in repaying tens of billions in sovereign debt and nationalizing assets.
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