Is Exxon Mobil (XOM) One of the Best Blue Chip Dividend Stocks to Buy Now?

With an annual dividend yield of 2.75%, Exxon Mobil Corporation (NYSE:XOM) is included among the 12 Best Blue Chip Dividend Stocks to Buy Now.

Is Exxon Mobil (XOM) One of the Best Blue Chip Dividend Stocks to Buy Now?

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Exxon Mobil Corporation (NYSE:XOM) is one of the largest integrated fuels, lubricants, and chemical companies in the world.

On May 4, UBS increased its price target on Exxon Mobil Corporation (NYSE:XOM) from $171 to $174, while keeping its ‘Buy’ rating on the shares. The target boost, which reflects an upside of over 15% from the current price levels, comes as the analyst firm sees “multiple” levers to offset the oil and gas giant’s drop in production in Qatar amid the US-Iran war.

Exxon Mobil Corporation (NYSE:XOM) delivered better-than-expected earnings in its Q1 report on May 1, supported by the higher output in Guyana and the Permian Basin. However, the company’s net income dropped to its lowest level in five years due to global supply disruptions from the Iran war.

Exxon Mobil Corporation (NYSE:XOM) reported total worldwide production of 4.59 mboed for the quarter, up marginally from a year ago, but down nearly 8% from 5 million bpd delivered in the previous quarter. The company revealed that about 15% of its production is impacted by the Middle East war, and expects its production to fall by 750,000 bpd compared with 2025 if the Strait of Hormuz remains closed for the entire second quarter.

That said, the oil behemoth remains on track to grow its full-year Permian output to 1.8 million oil equivalent barrels in 2026.

While we acknowledge the potential of XOM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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