The Western Hemisphere’s largest oil company was slammed by Covid-19 lockdowns that obliterated energy demand and forced Exxon to scale back an ambitious investment program. General Motors announced Monday morning that it would be suspending its dividend to preserve cash as its factories are shut down due to the coronavirus pandemic. However, the company only brought in $29.7 billion in operating cash flow, $16.1 billion less than those two expense categories. There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 1.1. Enough to save the dividend. Well, Exxon spent $31.1 billion in capital and exploration in 2019, which was a 20% increase from 2018's $25.9 billion. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Yields Amid Georgia Run... Biggest Indian Lender to Power Firms Plans Retail Investor B... SoftBank Group Plans to Sell First Bond in More Than a Year. Over the week between March 19 and 25, their share prices rose between 25.8% (Chevron) and 68.8% (Shell's Class A Shares). How much would satisfy the market? “Dividend cuts are inevitable,” says Richard Bernstein, CEO of Richard Bernstein Advisors. That almost certainly would have involved outspending the company's cash flow at times. Historical dividend payout and yield for Exxon (XOM) since 1989. So far, not. XOM Dividend History & Description — Exxon Mobil Corp. Exxon Mobil operates or markets products in United States and other countries through its divisions and affiliated companies. It has dropped 27% over the past month, generally in line with the broader market, and the yield on the fund has slipped to 2.6%. Exxon, on the other hand, saw shares rise just 12% during that period. Before today, Exxon was the third-largest dividend payer in the S&P 500 Index behind Microsoft Corp. and AT&T Inc., according to data compiled by Bloomberg. The payout is “secure” because the company has capacity to take on debt to fund it, she said. If it does, ExxonMobil -- and the oil industry in general -- will have bigger problems than just a potential dividend cut. Dividend stocks have traditionally been coveted by investors because they provide guaranteed returns to shareholders, typically paid out annually out of the company’s profits or reserves. But the company has … Exxon (NYSE:XOM) pays $3.48 per share in dividends to its shareholders. Profits will crash in 2020, putting the dividend at risk. Despite its recent credit downgrade, it maintains a rating of Aaa/AA, which is still very high. That's been a winning strategy for the company in the past, which makes it uncertain how much cutting Woods will be willing to do. The previous Exxon Mobil Corp. dividend was 87c and it went ex 2 months ago and it was paid 25 days ago. John has found investing to be more interesting and profitable than collectible trading card games. On an annualized bases, the dividend will cost Exxon almost $15 billion this year. XOM's most recent quarterly dividend payment was made to shareholders of record on Thursday, December 10. Image source: Getty Images. If it comes out with anything less than a 20% reduction in capital spending, the market is likely to punish the stock. There is something else to consider: XOM stock has a dividend yield of 8.5%. He seeks growth and value stocks in the U.S., in Germany, and beyond! Will the dividend be cut? Even if the company maintains quarterly payouts at the current level for the rest of 2020, the annual outlay will be $3.48 a share, or 1.5% above 2019. 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