Exxon Mobil Boosts Its Dividend Slightly

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 [e-mail]

(END) Dow Jones Newswires

April 27, 2016 17:25 ET (21:25 GMT)

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