Exxon Mobil and W.W. Grainger Increase Dividend

Both Exxon Mobil (XOM) and W.W. Grainger (GWW) announced dividend increases today.

Exxon Mobil:

• Exxon Mobil increased its quarterly dividend 9.4% to 35 cents per share versus 32 cents per share in the same quarter last year. Although XOM tends to increase its dividend on a calendar year over year basis, it does not have a track record of increasing the dividend every fifth quarter. Exxon last increased its dividend in the 1st quarter of 2006.

• The increase of 9.4% is slightly higher than the 5-year average dividend growth rate of 8%.

• The estimated payout ratio is approximately 22% based on 2007 estimated earnings of $6.23. The 5-year average payout ratio is about 32%.

W.W. Grainger:

• Grainger increased its quarterly dividend 20.7% to 35 cents per share versus 29 cents per share in the same quarter last year.

• The increase of 20.7% compares to the 5-year average dividend growth rate of 11%.

• The estimated payout ratio is approximately 24% based on 2007 estimated earnings of $4.82. The 5-year average payout ratio is about 27%.

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