Exxon Mobil’s 43 Year Dividend Streak Looks Secure Despite Falling Earnings

Core Viewpoint - Exxon Mobil's dividend remains secure despite declining earnings, supported by a strong balance sheet and comfortable payout ratios [2][7]. Financial Metrics - Annual dividend is $3.96 per share, yielding 3.38% [2][3]. - The company has increased its dividend for 43 consecutive years [2][7]. - Earnings payout ratio is 57.6%, calculated from TTM diluted EPS of $6.88 against the annual dividend [4][5]. - Free cash flow (FCF) payout ratio is 54.4%, with $30.7 billion in FCF generated in 2024 [4][5]. - Operating cash flow coverage is strong at 3.3x [5]. Earnings Trends - Net income decreased from $55.7 billion in 2022 to $33.7 billion in 2024, with Q3 2025 earnings dropping 12.3% year over year [5][7]. Balance Sheet Strength - Net debt stands at $53.3 billion against EBITDA of $61.7 billion, resulting in a net debt-to-EBITDA ratio of 0.86x [6][8]. - Interest coverage is robust at 53.7x, indicating minimal impact of debt service on operating income [6][8]. - Cash on hand is $13.9 billion, providing a solid buffer [8]. Historical Context - The company maintained its dividend during the 2020 pandemic by utilizing its balance sheet, paying $14.9 billion in dividends against negative $2.6 billion in FCF that year [9].