Exxon Mobil Boosts Its Dividend Slightly
April 27 2016 - 05:40PM
Dow Jones News
By Tess Stynes
Exxon Mobil Corp. raised its dividend by 2.7% on Wednesday, the
smallest percentage increase in the 34 straight years the company
has boosted its quarterly payout.
The move comes a day after Standard & Poor's Ratings
Services stripped the global oil giant of its pristine
triple-A-credit rating.
Exxon's dividend increase comes as many energy companies have
been cutting dividends and reining in spending to improve their
finances.
On Wednesday, Exxon said it now has boosted the dividend for 34
consecutive years. The next-smallest increase, 3.8%, was in 1997,
according to data from FactSet.
Exxon Mobil boosted its dividend 5.8% a year ago. Wednesday's
increase was also below the average 10% annual increase over the
past 10 years that the company cited at its analysts' meeting in
March.
S&P had cited Exxon's "large dividend payments" among the
reasons the credit-ratings company thinks Exxon's credit measures
would be below the rating firm's expectations for a triple-A-rating
through 2018. S&P also noted low commodities prices that have
been impacting the industry.
Exxon's board declared a quarterly dividend of 75 cents a share
on Wednesday, an increase of 2 cents a share, to yield 3.4%. The
dividend is payable to shareholders of record as of May 13.
"Nothing has changed in terms of the company's financial
philosophy or prudent management of its balance sheet," Exxon
spokesman Scott Silvestri said on Tuesday following the ratings
downgrade.
At the March analysts' meeting, Exxon Chairman and Chief
Executive Rex W. Tillerson said the company's dividend payments
"are made with a view to building sustainable, long-term
shareholder value and providing reliable dividend growth."
Shares of the company closed Wednesday at $88.46, up 1%.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
April 27, 2016 17:25 ET (21:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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