Is Exxon Mobile Corp A Solid Choice For Income Investors?

Exxon Mobil Corp XOM, the world’s second-largest energy company, could be a good income stock for long-term investors. Despite high volatility, the stock has made significant gains since January, outperforming the broader energy sector, which has gained 11.3% year to date.

Analysts at CoinCodex predict that Exxon Mobil’s stock will gain 3.72% to trade at $119.15 in the next five days, up from its current price of $114.68. Over the next 12 months, Wall Street analysts suggest the stock could reach a high of $152 and a low of $110.

Experts rate Exxon Mobil as a strong buy, citing its excellent financial health. The company has a GuruFocus Financial Strength Rank of 8, indicating a strong balance sheet that can withstand business slowdowns and recessions. GuruFocus determines a company’s financial stability by analyzing its debt burden, debt-to-revenue ratio and Altman Z score. Companies with a score above 7 are considered to have a strong balance sheet.

Zacks analysts also rate Exxon Mobil as financially stable and potentially undervalued, making it a strong buy for long-term income investors. The company is a dividend aristocrat, having increased its annual dividend payments for the last 42 years.

Exxon Mobil has maintained an annual dividend growth rate of 2.20% over the last five years. The stock currently offers an annual dividend yield of 3.31% with a payout ratio of 45.77%. This low payout ratio demonstrates the company’s ability to maintain dividend payments while investing for growth.

As of April 2024, 81 hedge funds own Exxon Mobil stock, indicating its popularity among institutional investors who are typically attracted to stocks with stability, growth potential and liquidity.

Are You Missing The Chance For Even Higher Yields?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. 

For example, the Jeff Bezos-backed investment platform just launched its Private Debt Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings.