EXXON MOBIL RAISES DIVIDEND AFTER RELEGATION RECORD

EXXON MOBIL RAISES DIVIDEND AFTER RELEGATION RECORD

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EXXON MOBIL RAISES DIVIDEND AFTER RELEGATION RECORD

– Exxon ups dividend 3 percent day after ratings downgrade

– S&P Downgrades Oil Giant for the First Time in 70 Years

– Group Had Increased Dividend for 34 Years

EXXON MOBIL RAISES DIVIDEND AFTER RELEGATION RECORD
Exxon Mobil Refinery

EXXON MOBIL RAISES DIVIDEND AFTER RELEGATION RECORD

Exxon Mobil Corp has upturned its quarterly dividend by 3% on Wednesday. This was a day after Standard & Poor had relegated the U.S. oil and gas company citing its substantial outgoings to shareholders.

According to Thomson Reuters data, it was the least upsurge since at least the first quarter of 2006, when the dividend rose 10%.

EXXON MOBIL RAISES DIVIDEND AFTER RELEGATION RECORD

EXXON MOBIL RAISES DIVIDEND AFTER RELEGATION RECORD
Gas Station

In more than 70 years, downgrading the oil giant was the first by S&P. Last week, it was highlighted by the ratings agency and did not appear as a surprise on Wednesday morning as Exxon’s board met to approve the dividend increase and review quarterly results, which are set to be released on Friday.

The group had ceased a huge share repurchase package on February 2, the same day S&P cautioned openly that relegation was possible. The repurchase program had reduced the dividend payout for years, and its termination was the first sign by Exxon’s board of less-generous remuneration to shareholders.

It was gathered that Exxon has increased its dividend annually for the past 34 years. The increase this year resulted from the fight between the company and its peers over the insight.

EXXON MOBIL RAISES DIVIDEND AFTER RELEGATION RECORD
Rex Wayne, C.E.O. Exxon Mobil

They perceive that they expend outrageously on shareholders and not enough strengthening its balance sheet and building oil reserves.

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Records with U.S. regulators indicate that at a combined $325 billion in dividends and repurchases, Exxon’s spending on shareholders in the last 11 years has surpassed by nearly 20% its outlays of $271.7 billion for new property, plant and equipment over the same period.

On Tuesday, S&P cut Exxon’s top-tier credit rating by one notch to “AA+” from “AAA.” According to the company, it was fretful that the world’s largest publicly traded oil company would rather enrich shareholders than cull debt.

EXXON MOBIL RAISES DIVIDEND AFTER RELEGATION RECORD

Reuters published that Exxon raised its payout to 75 cents from 73 cents. The dividend will be payable on June 10 to shareholders of record as of May 13.

Allegedly, shares of Exxon gained 0.8 percent to close Wednesday at $88.46 per share.