Rising oil prices and a slimmed-down business model helped Exxon Mobil accomplish a historic milestone in its first-quarter profits report. The cash flow of the corporation was sufficient to fund the dividend and capital expenditures. Analysts were suggesting just a few months ago that Exxon would have to decrease its dividend.
Exxon Mobil (ticker: XOM) announced adjusted earnings of 65 cents per share on Friday, a nickel higher than Wall Street expectations. The company’s revenue of $59 billion exceeded analysts’ projections of $56 billion.
Is XOM a buy or sell?
Exxon Mobil is now rated as a Hold by the market. The average rating score for the company is 2.14, with 6 buy ratings, 10 hold ratings, and 5 sell recommendations.
Is XOM a good long term investment?
With a market cap of $265 billion, it can pay a nearly 6% dividend yield while still keeping 7% of its cash flow. That’s a 13% cash flow return that can be used to pay down debt, buyback shares, or other incentives. Exxon Mobil is a desirable long-term investment for shareholders because of all of this.
How often does Exxon Mobil stock pay dividends?
Exxon Mobil (ticker: XOM) announced Wednesday that it will increase its quarterly dividend for the first time since April 2019, putting an end to months of suspense.
What is Exxonmobil dividend?
IRVING, Texas (CBSDFW.COM) – Exxon Mobil Corporation’s Board of Directors today approved a cash dividend of $0.88 per share on the Common Stock, which will be paid on December 10, 2021 to shareholders of record on November 12, 2021.
Is XOM a good buy right now?
Thanks to favorable earnings estimate revisions from covering analysts, Exxon presently has a Zacks Rank of #1 (Strong Buy). Exxon appears to pass the test, as we recommend that investors select equities with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B.
Is Exxonmobil undervalued?
At its current price, Exxon Mobil (NYSE:XOM) appears to be considerably undervalued. XOM stock ended at $60.14 on July 8, although it has a very good valuation. It pays a very healthy 5.76 percent dividend yield and trades for only 16 times this year’s expected earnings, for example.
Using historical yield and price-to-earnings (P/E) criteria, I value XOM stock at $75.19 per share. As of July 8, this represents a potential upside of 25% for stock investors.
The company’s prognosis is also largely optimistic. Oil and gas prices have risen in recent months, particularly as global economic development has accelerated. Furthermore, according to Yahoo! Finance, analysts predict earnings per share (EPS) to reach $3.87 this year, up from a negative 33 cents EPS last year. And they expect $4.62 per share in 2022. On July 8, XOM stock was trading at $60.14, giving it a forward P/E of just 13 times earnings.
Why is Exxonmobil going up?
In a report late Thursday, Exxon Mobil said higher oil and natural-gas prices might boost its third-quarter earnings by up to $1.5 billion. Natural-gas prices have risen dramatically over the world in recent months, owing to shortages in the United Kingdom, Europe, and China, which are partly due to increased demand as a result of the Covid-19 recovery.
Can you get rich from dividend stocks?
Investing in the greatest dividend stocks over time can make you, your children, and/or grandkids wealthy. Investing small amounts of money in dividend stocks over time and reinvesting the dividends can make many investors wealthy, or at least financially secure.
How long do I have to hold a stock to get dividends?
To put it another way, you just need to own a stock for two business days to receive a dividend. Technically, you could acquire a stock with one second remaining before the market closes and still be eligible for the dividend two business days later. Purchasing a stock just for the sake of receiving a dividend, on the other hand, can be pricey. To fully comprehend the process, you must first comprehend the words ex-dividend date, record date, and payout date.
Is Exxon stock going to split?
In the twentieth century, XOM split its shares on a regular basis, but there have been no splits in recent years due to sluggish share price growth. We don’t believe another stock split is probable in the near future, but that doesn’t mean XOM is a bad investment.
How long has Exxon paid a dividend?
ExxonMobil, the oil and gas corporation, has a longer dividend streak than Eli Lilly. Since 1882, it has been paying them. It’s also a member of the Dividend Aristocrats, a group of companies that have increased their distributions for at least 25 years in a row. ExxonMobil’s dividend hasn’t been increased since 2019, but that streak will continue if the corporation increases its payout before the conclusion of the current year. (As a result, the total dividend for 2021 will be larger than it was for 2020.)
Even if the company’s dividend isn’t increased this year, that doesn’t imply it’s suddenly a negative investment for income investors. True, the pandemic’s impact on oil prices has produced headaches for ExxonMobil and other oil companies over the past year and a half. However, there is some good news: oil prices have been rising this year, reaching levels not seen since 2018. ExxonMobil will be in a better financial position if those levels hold. (It has lost money in three of the previous five quarters.)
The company’s diluted per-share earnings of $1.10 in the second quarter was far higher than the $0.87 in quarterly dividends it now pays out. This is a big improvement from the $0.26 loss per share it suffered in the same period previous year.
