Is This Blue Chip's 8% Yield in Danger?

This energy blue chip is a household name - but its competitive payout may be in danger as its dividend safety dwindles.  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ [Browser View]( [Wealthy Retirement]( Is This Blue Chip's 8% Yield in Danger? Marc Lichtenfeld, Chief Income Strategist, The Oxford Club [Watershed 5G Event Expected on June 25]( [Crowd at Concert](This event is set to change our country as we know it... Kick-start the Fourth Industrial Revolution... And potentially make shareholders of ONE $7 stock extremely rich. [(Full story here.)](  Editor's Note: One month to go... Time is running out for Americans to finish the dreaded yearly scourge that is tax season. But this year, we have good news! Chief Income Strategist Marc Lichtenfeld has assembled his top tips for maximizing your refund into the YouTube series [Sticking It to the Tax Man](. This quick and easy collection of his best strategies will help you stiff-arm the taxman this year and for years to come. [Click here]( to watch Episode 4, which focuses on how to create a tax-efficient portfolio. - Mable Buchanan, Assistant Managing Editor ---------------------------------------------------------------  [Marc Lichtenfeld]  If we were on Family Feud and were asked to name a top oil company, I'm sure Exxon Mobil (NYSE: XOM) would be right near or at the top. It produced nearly 4 billion barrels of oil last year. If in the next round we were asked to name a blue chip stock in danger of cutting its dividend based on a 100-person survey, I bet we'd get a big loud X for saying Exxon again. But perhaps that should be an answer on the board...  The reason no one would think of Exxon Mobil as a potential dividend cutter is that it has raised its dividend every year for the past 37 years. That's an impressive track record, and it shows a real commitment to returning capital to shareholders. But while management's resolve may be admirable, its financials may not be able to back up the intent. The company simply cannot afford its dividend. Exxon Mobil's free cash flow is in bad shape. It has plummeted from its levels of just a few years ago.  [Chart - Exxon Mobil's Free Cash Flow is Drying Up]  And here's the problem. The company pays out nearly $10 billion more in dividends than it generates in free cash flow.  [Chart - Exxon Mobil's Free Cash Flow is Drying Up]  That means the company will need to borrow money or sell assets to pay its dividend, as it has only about $3 billion in cash.  [Gold Chart]( [Do you own gold?]( See that volume spike? [Somebody just decided to buy a LOT of gold.]( And I think I know why... it's all about a meeting that's scheduled for March 18. If you own gold (even just a few ounces of it) you've got to see what's happening. The big announcement is just days away. [Click here now.](  Last year, crude oil dropped to an average price of $64 per barrel from $71 the prior year. Today, crude is trading in the low $30s, which will smash Exxon Mobil's (and other oil producers') cash flow further. In fact, oil prices need to be above $80 a barrel - more than double today's prices - in order for Exxon Mobil to cover its dividend. With a 37-year track record of annual dividend raises, management isn't going to reduce the dividend on a whim. And in this low rate environment, it knows that the 8% yield is extremely attractive. Exxon Mobil has a decades-long tradition of growing its dividend. I suspect it will beg and borrow to continue giving shareholders a strong payout. But if you look at the numbers, they tell you the company can't really afford to do this. And if oil prices stay low this year, free cash flow could disappear completely, putting the company in an even larger hole in order to pay shareholders. I don't expect the dividend to be cut in the immediate future, but it cannot be considered safe. Dividend Safety Rating: D  [Dividend Grade Guide]  If you have a stock whose dividend you'd like me to analyze, leave the ticker symbol in the [comments]( section. Good investing, Marc  [Click Here to Comment](  [The $1.1 Million Mistake (That Could Make YOU Rich!)]( Marc Lichtenfeld just made an innocent keyboard error on his supercomputer... and it unlocked [a hidden gold mine in the stock market]( that you've likely NEVER seen before...  [The Wrong Key](  [Check out the crazy story behind Marc's discovery right here.](  - More From Wealthy Retirement -   [Worried Seniors Watching the Market]( [Use These 4 Stocks to Profit, Not Panic]( [Coronavirus fears have caused shutdowns in almost every corner of the market - but these four plays should be immune to the panic.](  [Worried Seniors Watching the Market]( [How to Handle a Market in Chaos]( [The coronavirus panic led to a market in distress - but investors should hold on to their hats...](  [Pleased Seniors]( [How to Become a Millionaire Before You Retire]( [Investors who follow this time-tested guidance to become a millionaire are more likely to achieve financial independence.](    [Facebook]( [Twitter](   [Best CBD Cream for Pain (The Reviews Are In!)]( [Massaging Cream Into Hands](It's powerful... fast-acting... and nonaddictive... with [results you can FEEL in as little as seven seconds](. 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