Exxon Mobil Corp. (NYSE: XOM) has just given another vote of confidence on higher oil prices, or so it would seem. "BIG OIL," or dare we say "Standard Oil," has announced that it was boosting its quarterly dividend. We have been critical about oil companies not paying enough out to shareholders to recognize the new climate for oil prices, and even speculated on the possibility of integrated oils hiking their dividends.
Now with the dividend going from $0.35 to $0.40 per quarter, and based on a $93.25 share price, this new dividend yield would come to 1.7%. That might not exactly be a barb-burning dividend but it is a decent hike. It was just a year ago that Exxon raised its dividend from $0.32 to $0.35, and only about 15 months before that the dividend had been $0.29.
Maybe the famed T. Boone Pickens was right. Maybe yesterday’s priced DO reflect $75 oil rather than $100 oil.
Exxon Mobil’s 52-week trading range is $77.55 to $95.27.
Jon C. Ogg
April 30, 2008