Want $1,000 in Dividend Income? Here’s How Much You Have to Invest in ExxonMobil Stock.

With a market capitalization of over $500 billion, ExxonMobil (XOM -0.69%) is one of the world’s largest oil and gas companies and the largest publicly traded energy stock in the U.S. ExxonMobil has grown leaps and bounds in the 140 years or so of its existence, and the stock has been a favorite among energy investors for its dividend stability and growth — the integrated oil supermajor increased its annual dividend for the 41st straight year in 2023. Dividend growth has hugely contributed to ExxonMobil stock’s total returns over time.

You could comfortably earn $1,000 in annual dividend income from ExxonMobil if you buy some shares today. Here’s how.

ExxonMobil’s last quarterly dividend of $0.95 per share equates to an annual dividend of $3.8 a share. So buying roughly 264 shares, or investing around $31,000 in ExxonMobil shares today, can earn you a yearly dividend of $1,000 from the oil stock.

Buying this 3.3%-yielding stock could prove worthy for income investors. ExxonMobil is on solid footing, just made a big acquisition, and expects its cash flows to grow steadily, which should support a higher dividend.

ExxonMobil’s dividends look safe and poised to grow

ExxonMobil earned an industry-leading net income of $36 billion in 2023 and generated cash from operations worth $55.4 billion, of which it returned $14.9 billion to shareholders in dividends. The company has a clear growth path ahead, having recently acquired Pioneer Natural Resources in an all-stock deal worth $64.5 billion. The acquisition has more than doubled ExxonMobil’s footprint in the Permian Basin and should be immediately accretive to its earnings and cash flows.

By 2027, ExxonMobil expects its earnings to more than double and cash flow from operations to nearly double versus 2019 at a Brent crude oil price of $60 per barrel. As its earnings and cash flows grow, so should dividends, making ExxonMobil stock a solid buy today for income investors.