Sunday, October 18, 2015

Recent Buy: Exxon Mobil


 Investor Relations

Sep 25, 2015: Bought 35 shares of XOM at $73.27 per share.

ExxonMobil Corp. (NYSE:XOM) is the world's largest publicly traded international oil and gas company. Founded in 1882 and based in Irving, TX, XOM is engaged in oil and natural gas exploration and production, petroleum products refining and marketing, chemicals manufacture, and other energy-related businesses. More than 80% of Exxon's earnings come from its operations outside the United States.

My buy price of $73.27 results in an initial yield on cost (YoC) of 3.99%.

XOM is an existing holding. I first bought shares of XOM in October 2013, picking up 30 shares at $85.18 per share and at a YoC of 2.96%. With this buy, I'm averaging down to a per share price of $78.82.

35 shares of XOM adds $102.20 to DivGro's projected annual dividend income.

To see my analysis of XOM and the reasons I added shares, please read this article at Seeking Alpha.



Please feel free to leave comments on this article either at Seeking Alpha or here, on my blog. I'll do my best to respond to each comment as quickly as possible.


8 comments :

  1. Nice Purchase Ferdis. Solid company at a solid price. Thanks for sharing. This is one of my core holding and would love to add more! however, I won't be buying much Oil anymore because I'd like to focus more in the Healthcare and consumer space.
    Take care and cheers to our journey bud.

    ReplyDelete
    Replies
    1. Thanks for reading and commenting, Dividend Hustler. Personally, I'm somewhat overweight in Energy sector stocks myself, but this one seemed just too good to pass up. My timing seemed to be good, since XOM is now trading at $82.47. I won't be adding more at this price!

      Delete
  2. I agree that XOM is a great company with a very nice dividend, but I'm curious why you didn't but shares of Chevron instead. Same industry, similar quality, significantly better yield (4.70%). If dividends are important, why not buy the best dividend in the multinational energy sector?

    Respectfully,
    Dennis McCain
    dennismccain.weebly.com

    ReplyDelete
    Replies
    1. Hi Dennis McCain -- thanks for your comment and question.

      The main reason I didn't buy (more) shares of CVX is that I'm already "doubled-up" on CVX. (I buy shares in batches of about $2,500, so I've already invested $5,000 in CVX).

      Another (slight) concern is that CVX has not raised its dividend since the beginning of 2014. Theoretically, the dividend streak is safe unless they don't increase and pay a higher dividend in 2016.

      XOM did raise by about 6% this year.

      Delete
  3. Hi Ferdis,

    Good buy in a temporarily beaten down sector. Unlike other energy companies Exxon definitely has the wherewithal to ride out this difficult time in the oil patch. I'm sure you will be smiling all the way to the bank in a few years time!

    ReplyDelete
    Replies
    1. Thanks for your comment, Security Whisperer! I agree with you, XOM is a strong company with enough room to maneuver in this difficult environment. Here's hoping that you're right with your last sentence!
      Best of luck to you in your endeavors, too!

      Delete
  4. Great buy. I wanted to buy Exxon but chose Chevron instead. Exxon should be my next purchase when US dollar gets a bit cheaper.

    Cheers!

    BSR

    ReplyDelete
    Replies
    1. Nothing wrong with CVX -- a slight concern I have is that the company has not increased its dividend this year. Others may share the concern, so CVX has dropped a little more than XOM, which creates an even better opportunity to pick up shares... I think CVX will come through in time, though. Strictly speaking, they need to pay an increased amount next year to retain their streak of dividend increases.

      Delete

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