Exxon's once-hefty dividend is now tiny. Here's how to fix that

With its recent rally, shares of oil giant Exxon Mobil now yield 2.7%, the lowest since 2014, and just a touch higher than what dating site Match Group pays its shareholders. Exxon's dividend has been one of the company's key selling points with investors, particularly of the retail variety. So what do you do now if you own shares for income purposes? Turn to options. Exxon currently presents a compelling case for a "buy-write with a twist" — otherwise known as a covered call spread. This strategy allows investors to collect premium income while retaining a window for capital appreciation, a necessary feature when a stock exhibits the fundamental and technical strength currently seen in XOM. The macro & fundamental catalyst Exxon is operating in a sweet spot of capital discipline and favorable market dynamics. With energy demand projected to remain robust, the company's focus on high-margin production has translated into exceptional free cash flow. From a valuation perspective, XOM remains attractive, with a low EV/EBITDA multiple. Furthermore, recent upward revisions to earnings estimates indicate that analysts are recognizing the company's operational efficiency. Over the past five years, Russell 1000 constituents that combined rising earnings estimates with high free cash flow yields delivered significantly better monthly returns, particularly when the technical setup was also good... and it is. …