Finding a great dividend stock can be difficult for even the savviest investors. So when you come across a stock like ExxonMobil (NYSE: XOM ) , it's good to take note.
While Exxon's profitability and stability are certainly contributing factors to its status, there are three reasons in particular that make the stock great for income-seeking investors. First, it yields 2.5%, compared to the S&P 500's 1.98%. Second, Exxon currently distributes an extremely reasonable 33% of earnings, leaving plenty of room to increase its dividend if the board of directors chooses to do so. And last but not least, the energy giant has both paid and increased its dividend consistently for 31 years.
As Motley Fool contributor John Maxfield discusses in the video below, the net result of these impressive facts is that Exxon is indeed a great dividend stock for income-seeking investors to buy and own today.
Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.