Oil Back to the top again $110 a barrel. And this 156-year-old man dividend aristocrats Sitting in an enviable position.
When crude prices surge, not all oil companies benefit equally. Some are more susceptible to Middle Eastern supply chains. Others have too much debt to take advantage of higher prices. Exxon Mobil It’s neither.
The Spring, Texas-based company is Founded in 1870. Over the past few years, it has been reinventing itself into a leaner, more profitable machine.
Now, with oil prices surging to levels not seen since Russia invaded Ukraine in 2022, Exxon Mobil (XOM) looks like one of the clear winners in the energy space.
West Texas Intermediate crude rose sharply, CNBC reports 26.5% to $114.90 per barrel follow Strait of Hormuz closed.
A strait is a narrow waterway fifthThe world’s oil corridors. Gulf Arab states including Kuwait, Iraq and the United Arab Emirates have forced to cut production because They had no place to store the barrels stacked on the shore.
For ExxonMobil, this setup is advantageous. Company owned Large-scale global trade operations It also has one of the largest long-term charter fleets in the industry.
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Senior Vice President Jack Williams said the company can transport feed and products around the world to “optimize for this situation.”
In short: ExxonMobil has more tools Responding to supply disruptions than most competitors.
Crucially, ExxonMobil Production is mainly concentrated in the Permian Basin of the United States and Guyana.
This means this particular conflict poses less operational risk while still benefiting from higher global oil prices.
XOM stock price has risen 23% in 2026 It soared 40% last year despite a sluggish macro environment.
ExxonMobil raises dividend every year 43 consecutive yearsmaking it one of the longest consecutive upward trends in the S&P 500.
roughly the same as $17 billion in expected annual dividend payment As well as a target of 13% earnings growth by 2030, management has made it clear that the dividend is not going away.
Analysts predict XOM stock’s free cash flow will increase from $23.6 billion in 2025 to $41 billion in 2029, which should translate into continued dividend increases.
Speaking at the Morgan Stanley Energy & Power Conference earlier this month, Williams explained:
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Annual dividend per share: About $4.12
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Dividend Yield: About 2.72% (changes with stock price)
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Years with consecutive dividend increases: 43 years old
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Dividend payout ratio: ~60% free cash flow
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2026 share repurchase target: US$20 billion, subject to market conditions
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5-year shareholder return (annualized): 29%, industry leading
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Total shareholder distribution (2020-2025): $150 billion
ExxonMobil has increased its annual dividend from $0.75 per share in 1996 to $4.12 per share in 2026. The dividend is expected to increase to $4.74 per share in 2030.
The combination of growing dividends, aggressive share buybacks, and earnings growth is a powerful formula.
Fewer shares outstanding means greater future dividends for each remaining share – a mechanism that compounds over time.
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Rising oil prices are a short-term driver. But Exxon’s management team has been careful not to rely on them.
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CEO Darren Woods Since 2019, his team has cut $15 billion in structural costs and plans to save $20 billion.
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Permian Basin production hits record high Record fourth quarter of 1.8 million barrels per day 2025.
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In Guyana, four floating production facilities are currently producing approximately 875,000 barrels per day, ahead of schedule and below budget.
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The company is also developing new materials such as Proxxima, a resin system that is 75 percent lighter and twice as strong as steel, and a synthetic graphite product for battery anodes that charges 30 percent faster.
These businesses are currently small but will achieve meaningful growth after 2030.
out of 19 analysts cover Exxon Mobil stock12 people recommended “buy”, 6 people recommended “hold”, and 1 person recommended “sell”.
The average stock price target for XOM is $147, which is below its current trading price.
When oil prices are high, ExxonMobil generates more cash. When they are low, IMore than $20 billion in structural savings provide cushion.
That’s the focus of the transformation the company has been executing. For long-term dividend investors, this balance is exactly what they want to see.
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This article was originally published by TheStreet on March 9, 2026, and first appeared in the Investment section. Click here to add TheStreet as your preferred source.