You see, that’s what I love about dividend growth investing. The oil barrel drops by 50% and I still get a dividend raise far above inflation! For sure I’d like to be closer to my 8% dividend growth goal, but 5,8% is still great given the current circumstances.
Last year, Exxon had raised its dividend by 9,5% to 2,76$ per share. Now Exxon just announced that they will raise the quarterly dividend by 0,04$, raising the total annual dividend to 2,92$ per share. I currently own 29 shares of Exxon so my annual dividend from that company just has been raised from 80.04$ to 84.68$, almost 5$ per year.
What did I do to get that raise? Well… nothing at all. I just have been patient throughout the storm and I’ll be patient for the years to come because even though I’d like humanity to migrate toward cleaner energy, I also know that it’s not going to happen before many years. Until then, I will collect dividends.
According to Buyupside.com’s calculator, Exxon has raised its dividend by 7,41% since 1970 and according to Exxon investor’s page:
“ExxonMobil’s dividend payments to shareholders have grown at an average annual rate of 6.4% over the last 32 years.”
While past results are not guaranteed to repeat in the future, my thoughts are that we are more and more humans on this planet and that emerging countries and China are craving for more oil. There might be some crisis right now, but over the long run, things will return to normal.
I’m a very happy shareholder with that stock and I will probably buy more in the future. But for now, unless there would be a great “sale”, I’ll stay on the sideline because I want to diversify my portfolio a little and I’ll probably mostly focus on Canadian stocks right now given the current currency exchange rate. In fact, with the current exchange rate at 1,21% (plus my bank’s fees), even with the stock trading at 87$, it would still cost me more than what I paid for my shares.
Did you have any dividend raise recently?