Prediction: ExxonMobil Will Increase Its Dividend Every Year Through at Least 2030

Core Viewpoint - Companies that consistently pay and increase dividends, like ExxonMobil, are solid investment opportunities due to their historical higher total returns and lower volatility compared to non-dividend-paying companies [1] Financial Performance - ExxonMobil generated $34 billion in earnings and $55 billion in cash flow from operations last year, marking its third-best year in a decade despite oil prices being around their 10-year average [4] - The company has achieved cumulative structural cost savings of $12.7 billion since 2019, surpassing the reported cost savings of all other international oil companies combined [5] Strategic Investments - ExxonMobil plans to invest a cumulative $140 billion into major projects over the next five years, including up to $30 billion in lower carbon energy opportunities [9] - The company aims to achieve $18 billion in total structural cost savings by 2030 compared to 2019's baseline [10] Future Growth Projections - ExxonMobil's updated long-term corporate plan anticipates an additional $20 billion in earnings and $30 billion in cash flow over the next five years [8] - The company expects to generate a cumulative $165 billion of excess free cash flow from 2025 to 2030, assuming oil averages $65 per barrel [11] Shareholder Returns - ExxonMobil plans to return surplus cash to shareholders through dividend increases and share repurchases, targeting $20 billion in stock buybacks this year and another $20 billion in 2026 [12] - The company has a history of growing its dividend at a 6% compound annual rate and is expected to continue this trend through at least 2030 [13]