By Ernest Scheyder
April 25 (Reuters) – Exxon Mobil Corp raised its
quarterly dividend 21 percent on Wednesday, bowing to sustained
pressure from investors and Wall Street analysts.
The world’s largest publicly traded oil company raised its
quarterly payout to 57 cents from 47 cents.
The dividend will be payable on June 11 to shareholders of
record as of May 14.
Exxon shares rose 0.4 percent to $86.64 after the
announcement. The stock has traded between $67.03 and $88.03 in
the past 52 weeks.
The company, which had $12.66 billion in cash at the end of
last year, was under pressure from Wall Street and shareholders
to match the payout of smaller peer Chevron Corp.
The 21 percent rise was larger than the 10 percent to 15
percent many analysts expected.
Exxon, based in Irving, Texas, has historically favored
share buybacks over dividend increases as a way to increase
returns, spending $20 billion on share repurchases last year and
$9 billion on dividends.
Chief Executive Rex Tillerson told analysts at the New York
Stock Exchange last month that Exxon would seriously evaluate
raising its dividend after it completed buying back shares
issued for its $41 billion all-stock purchase of XTO Energy Inc
in 2010.
The XTO stock repurchase was expected to be completed by the
end of the first quarter, according to a transcript of the
meeting.
“We are mindful of our competitiveness in the dividend area,”
Tillerson said at the NYSE. “We know we are on the low end of
yield, certainly within our sector.”
