- The XUDV ETF, which tracks the VettaFi New Frontier US Dividend Select Index, is noted as investors seek income amid rising inflation.
- Rising Treasury yields are challenging the appeal of dividend stocks.
ExxonMobil Dividend Appeal Challenged by Rising Government Bond Yields
1 report, 1 independent
Updated Sep 21
AI-generated briefing. Brind wrote this from the reports listed below. It can be wrong. Each section says how much you can rely on it, and the sources are linked so you can check.
What happened
Market discussion indicates that the dividend appeal of ExxonMobil is being weighed against the performance of government bond yields. The company's forward-looking dividend yield was noted at 2.5%, based on an assumed quarterly payment of $1.03 per share. To generate $750 quarterly, an investment of over 728 shares would be required.
From fool.com
Why it matters
The comparison highlights the trade-off between dividend stock income and the current yields on U.S. Treasuries, which are reportedly on the order of 5%. While dividend stocks like ExxonMobil offer quality names, they may start with a lower yield than fixed-income alternatives.
Rising Treasury yields are challenging the appeal of dividend stocks.
From fool.com
Who's involved
- ExxonMobilAmerican multinational oil and gas corporation facing market dividend scrutiny.