■ Analysis · August 26, 2026
ExxonMobil's Dividend Streak Nears 44 Years, But Raises Have Slowed
ExxonMobil is set to extend its dividend increase streak to 44 years, but recent raises have been modest at about 4% annually, a shift from larger hikes in the past.
ExxonMobil (XOM) is expected to announce its 44th consecutive annual dividend increase in late October or early November, alongside its third-quarter results. The company's current quarterly dividend stands at $1.03 per share, or $4.12 annually, yielding approximately 2.5% at a share price of around $163. However, the pace of increases has slowed in recent years, with raises of about 4% each year for the past four years.
Recent Raises vs. Historical Increases
In October 2022, ExxonMobil raised its quarterly dividend from $0.88 to $0.91, a 3.4% increase. Subsequent raises brought the dividend to $0.95 in 2023, $0.99 in 2024, and $1.03 in October 2025, representing increases of 4.4%, 4.2%, and 4%, respectively. Over the four-year period, the total increase amounts to about 17%.
In contrast, the company raised its dividend by 21% in a single announcement in 2012, lifting the quarterly payout from $0.47 to $0.57. That single raise was larger in percentage terms than the combined increases of the last four years.
Between these periods, ExxonMobil held its quarterly dividend at $0.87 for ten consecutive quarters from mid-2019 to late 2021, as the pandemic severely impacted oil prices. The streak continued only because the last raise before the freeze had taken effect partway through 2019, allowing the calendar-year total to inch higher.
Financial Strength Supports Larger Raises
The modest raises are not due to financial constraints. In the second quarter, ExxonMobil reported net income of $14.5 billion, or $3.48 per share, roughly double the $7.1 billion earned in the same quarter of the previous year. Cash flow from operations reached $23.6 billion, and free cash flow was $17.2 billion.
The quarterly dividend cost approximately $4.3 billion, part of $9.4 billion in total shareholder distributions. Free cash flow covered the dividend about four times over, a level of coverage that many dividend payers would envy.
Instead of larger dividends, the company has allocated capital to share repurchases and growth investments. In the second quarter, ExxonMobil spent $5.1 billion on buybacks, consistent with an annual pace of $20 billion—more than the roughly $17 billion annual dividend cost. Additionally, the company invested $13 billion in capital expenditures in the first half of the year, including record Permian Basin production and a fifth production vessel in Guyana.
Dividend Policy Reflects Past Lessons
The current capital allocation strategy appears shaped by the 2020 oil price collapse, which turned the dividend into a strain and led to a two-and-a-half-year freeze. Management protected the dividend during that period, and the experience seems to have influenced a more conservative approach.
By keeping dividend raises modest, the company ensures the payout remains sustainable even in low-oil-price environments, while buybacks can be adjusted more flexibly. A dividend increase is a long-term commitment, whereas buybacks can be scaled back without breaking a promise.
What it means for income investors
ExxonMobil's dividend record remains intact and well-funded, but the growth rate has slowed to roughly the pace of inflation. The company's strong cash flow and low debt provide a solid foundation for the payout, yet the era of double-digit raises appears to be a thing of the past.
Reporting based on: The Motley Fool. Figures verified against market data where available.