ExxonMobil Is Still An Unloved Cash Machine And Has No Need To Cut Its Dividend

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ExxonMobil XOM continues to generate cash and continues to return it to shareholders in the form of dividends.  There has been much speculation in the financial media about the future of Exxon’s $0.87 quarterly dividend.  My analysis, which I detail in the following paragraphs, shows there is no reason for Exxon's management to cut the dividend.  A token increase (a penny a share per quarter, for instance) announced before Exxon's earnings release on October 30h would not harm the company's financial situation.  Exxon has tapped the bond markets for an extraordinary $22 billion of debt financing in 2020, wisely taking advantage of the Fed-driven decline in both short- and long-term interest rates.   UNITED STATES - APRIL 9: An Exxon gas station is pictured in ...read more...