Adsense

Friday, March 9, 2018

Recent Buy: Exxon Mobil (XOM)

I've been able to continue to take advantage of market weakness and sector weakness as well. It's hard to say that I want the market to go down, but it really benefits one long term when it does. Price and yield are inversely correlated so if the market goes down all the dividend yields go up. This means my money is worth more and will earn me more dividend income. I've been able to save up some money this month and will be able to purchase stock at least two times.



My first purchase this month was 14 shares of Exxon Mobil (XOM) at $73.90 a share. This adds $43.12 to my yearly dividend income!

I have been watching Exxon fall for quite some time now and figured I had to pick up some more. Exxon is the largest of the world's big oil companies. This is a great company making tons of money off a vital resource that will be around for awhile. Alternative energy is coming, but it is going to take awhile before we are able to completely switch off of oil. Also, Exxon will have the resources to easily switch into another energy solution if need be. 

Exxon is now one of my larger positions at 51 shares. I really don't think you can go wrong with such a great company. Their price has been hit hard lately, but they will eventually recover. It is hard to find such great companies paying you a 4% yield so I had to pick up some more. 

Some quick facts about Exxon:
  • This is a company with revenues of $237 billion in 2017 and an estimated $298 billion in 2018
  • EPS of 3.23 (They have been hurt by the price of oil, but they are slowly recovering)
  • Dividend Yield of 4.15%
  • 3 year dividend growth rate of 4.3%
  • 5 year dividend growth rate of 7.0%
  • 10 year dividend growth rate of 8.4%
  • P/E of 22.91
Now their dividend growth rate may not be stellar over the next year or two, but the current yield will make up for that at this point. 

They will continue to increase their efficiency and remain one of the largest companies in the world. Oil is not going away anytime soon and even if it does they will be well suited to switch to the next energy resource. 


Let me know what you guys think! What have you guys been buying?

4 comments:

  1. I agree, I don’t think you can go wrong with Exxon at this price!

    ReplyDelete
    Replies
    1. Yes definitely! Such a large company making tons of money! I really don't think they are going anywhere anytime soon. Add in a 4.1% dividend yield with small growth and you have a great stock!

      Delete
  2. XOM is really on sale right now. I might have to buy some more even though its a nice size position. The only downside is deciding which will stay lower longer XOM or PPL. tough decisions

    ReplyDelete
    Replies
    1. Yes and it has been on sale for awhile too! Its hard not to buy such a large oil company that has staying power! The dividend yield is also great!

      Delete