It’s time for something to give. As long as that does not happen, I will receive my $0.87 quarterly dividend. Exxon does not intend to reduce its dividend. Woods’ career would be over if he did this. However, this is a short-term, every three-months analysis. An unappreciated cash machine will never be valued fairly in a market that prefers “the opposite of Exxon,” as the case may be.
If Exxon’s existing management team isn’t up to the task of providing more financial engineering, it may be necessary to look elsewhere for the ultimate in financial engineering.
Also, I’d take it.
Is Exxonmobil dividend safe?
It reported a fourth-quarter loss of $20.1 billion, down from an annual profit of $5.7 billion. A $19.3 billion impairment charge relating to dry gas assets in the United States, Canada, and Argentina is included in the declared loss. In the fourth quarter, adjusted earnings were $110 million, compared to $1.8 billion in the same period last year, as losses in the downstream sector offset gains in the upstream sector. Our fair value assessment and narrow moat rating have not altered, and they remain stable.
How Long Can Exxon pay dividends?
Aristocrat of the Dividends One of the few “dividend aristocrats” in corporate America, ExxonMobil now has a 39-year streak of increasing annual dividends. Microsoft Corp. and AT&T Inc. are the only two companies that pay out more than $15 billion a year.
Is Exxon a good company to invest?
This year Exxon Mobil (NYSE:XOM) has been a great investment.
As of June 30, the company’s stock is up 53%, while the S&P 500 is up just 14%.
There is currently an 8.4% dividend yield if you purchased shares when they were trading at $41 apiece at the beginning of 2013. Even at $64/share, the yield is almost 5.4 percent.
Altria (NYSE:MO), which yields 7.2 percent but no one wants to purchase since cigarettes kill, is cheap because XOM stock is like Altria today.
A Closer Look at XOM Stock
Taking a look at Exxon Mobil in December, I had this expectation. Back then, only one of the 10 Tipranks analysts who were watching it recommended it as a purchase; today, seven out of the 14 do.
It’s not just environmentalists who have burst through the defenses and gained entry to the Exxon board of directors; it’s also the company’s shareholders. Competition is the issue.
Renewable energy is becoming the most affordable form of energy. Electric cars are now the primary source of growth for any medium-sized car manufacturer.
This isn’t going to have much of an impact in the near future. The majority of automobiles still run on gasoline. A half-century ago in Texas, the Railroad Commission imposed a production cap similar to that of OPEC.
Currently, WTI crude oil is trading at more than $75 a barrel in the United States. Earlier this year, Exxon Mobil indicated it could generate a profit of double digits at $40/barrel.
As a result, I fully expect Exxon Mobil to declare record earnings on July 30. On a sales of $62.94 billion, the current projection is for a net profit of $1 per share.
A dividend increase could be justified if the company’s sales doubled in a year.
XOM’s debt is manageable, unlike most production companies, which have become known as “dead men drilling” due to their high debt levels. At the end of March, there was $45 billion in it. It is rated Aa1 for Exxon’s debt.
Is Exxon dividend Safe 2021?
Rising oil prices and a more efficient business strategy helped Exxon Mobil accomplish a major milestone in its first-quarter profits report. Dividends and capital expenditures were funded by the company’s cash flow. Analysts predicted only a few months ago that Exxon would be forced to decrease its dividend.
Adjusted earnings at Exxon (XOM) were 65 cents per share, above Wall Street projections by one penny. The company’s sales of $59 billion above projections of $56 billion, according to financial analysts.
How long do I have to hold a stock to get dividends?
For dividends to be taxed at the preferred 15% rate, you must hold the shares for a certain amount of time. The 61-day minimum time frame falls inside the 121-day window immediately before the ex-dividend date of the stock. There are 121 days prior to the ex-dividend date, which is 60 days.
Do Tesla pay dividends?
On our common stock, Tesla has never paid a dividend. We do not expect to pay any cash dividends in the near future because we plan to use all future earnings to fund future growth.
Is Chevron stock better than Exxon?
Differences in dividends The dividend yield of Chevron is 5.3%. Unlike Chevron, Exxon has grown its dividend every year for the past 38 years (at present they are both Dividend Aristocrats). Both have historically increased dividends at a rate in the mid-single digits each year.
Is Exxon undervalued?
In today’s market, the stock of Exxon Mobil (NYSE:XOM) appears to be extremely undervalued. Although it closed at $60.14 on July 8, XOM stock is currently trading at a very reasonable price point. Furthermore, it has a very good dividend yield of 5.76 per cent, and it trades for just 16 times this year’s expected earnings.
My XOM stock valuation is $75.19 per share, based on historical yield and P/E indicators. The stock has a potential upside of 25 percent as of July 8th.
Generally speaking, the company’s future prospects are bright. Prices for oil and gas have risen recently, especially since the global economy has been picking up pace. Furthermore, according to Yahoo! Finance, experts estimate EPS to rise from a negative 33 cents last year to $3.87 this year. It’s expected to be $4.62 per share in 2022, too. On July 8, XOM stock was trading at $60.14, putting it on a forward P/E of just 13 times.
