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Discover How to Generate $100 in Passive Income by Investing in Exxon Mobil Stock

Photo credit: finance.yahoo.com

Exxon Mobil Corp. (NYSE:XOM) is actively involved in the exploration and extraction of crude oil and natural gas in various regions, both within the United States and globally.

The company is set to disclose its Q1 2025 earnings on May 2, with analysts projecting an earnings per share (EPS) of $1.70. This marks a decline from $2.06 reported in the same quarter last year. In terms of quarterly revenue, estimates suggest an increase to $86.09 billion, compared to $83.08 billion from the previous year, according to data from Benzinga Pro.

Key Insights:

Exxon Mobil’s stock price over the past year has ranged between $97.80 and $126.34.

The company has a dividend yield of 3.80%, having distributed $3.96 per share in dividends over the last twelve months.

In its Q4 2024 earnings report released on January 31, Exxon Mobil reported total revenues and other income of $83.4 billion. This figure fell short of the expected consensus of $86.6 billion, as noted by Benzinga.

The company achieved a net production rate of 4.6 million oil-equivalent barrels per day in the fourth quarter, reflecting a growth of 20,000 oil-equivalent barrels daily from the previous quarter.

CEO Darren Woods emphasized the financial strength of the company, stating, “We delivered some of our highest earnings and operating cash flow in a decade. Our returns surpassed those of our competitors and significantly exceeded our cost of capital, allowing us to return substantial cash to shareholders—more than all but five companies in the S&P 500.”

For those interested in Exxon Mobil’s options trading dynamics, a detailed article by Benzinga delves into this topic.

Trending Now: Discover the under-the-radar asset class that has consistently outperformed the S&P 500 over the last few decades. See which asset class has outpaced the S&P 500 (1995-2024) – and with near-zero correlation.

For investors aiming to generate $100 monthly from dividends, an investment of around $31,579, or approximately 303 shares priced at $104.19 each, is needed.

Understanding Dividend Yield: To estimate the required investment for a specific income level, two factors are important—the desired annual income, which is $1,200, and the dividend yield of 3.80%. This leads to the calculation $1,200 divided by 0.038, resulting in a required investment of $31,579.

To determine the dividend yield, divide the total annual dividends by the share price.

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Dividend yields can fluctuate due to variations in stock prices and payments made to shareholders. For example, if a company pays an annual dividend of $2 and the stock is priced at $50, the yield would be 4%. Should the price increase to $60, the yield would decrease to 3.33%. Conversely, if the price falls to $40, the yield would rise to 5%.

Overall, investors focused on generating income may view Exxon Mobil as a viable option for achieving a steady monthly income of $100 through ownership of 303 shares. Additionally, the potential exists for further benefits as the company has consistently increased its dividend over the last 42 years.

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Image: Shutterstock

Source
finance.yahoo.com

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