XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted) - Page 2 - TigerDroppings.com

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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
21592 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


Wow that's a substantial amount of ignorance on display.





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notiger1997
Member since May 2009
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re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)








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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
81061 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


quote:

Why would they be buying back stock if they planned to split?
I don't even......






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Ellakennedi
Member since Aug 2012
379 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


Idea of a stock buy back program is to reduce shares to bring stock price up... Correct? Split would do the oppisite.





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
81061 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


quote:

to bring stock price up... Correct?
Correct.
quote:

Split would do the oppisite.
Not correct.






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southernelite
McNeese State Fan
New Orleans
Member since Sep 2009
40965 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


So where are we looking at split, and what kind of bump are we looking at the split. It splits around 105 and jumps to 58.5 or so?





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
81061 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


I don't know. But the dividend won't be cut in half. That alone gives the price a boost.





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Ellakennedi
Member since Aug 2012
379 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


So a split wouldn't create more shares? Seems like they have been heading in a opposite direction for some time now.





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
81061 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


quote:

So a split wouldn't create more shares
Yes. But it doesn't change EPS, after adjustment, like stock buy back programs do. Plus, splits usually include a dividend payout ratio increase while stock repurchase programs don't.






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ell_13
USA Fan
Alex Box
Member since Apr 2013
22738 posts
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re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


I wouldn't be surprised at a 3:1





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
81061 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


A 3:1 split would be a break from XOM's usual split policy.





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I B Freeman
Member since Oct 2009
5487 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


Anyone buying a stock solely because they anticipate a split is making a mistake.

Shares outstanding have nothing to do with the dividend payout ratio as one poster foolishly implied.

XOM has a very good record of paying dividends and increasing their dividend per share. They have made these dividend increases per share through actual payout of more dividend dollars and by reducing their outstanding share count through stock buybacks. Over the last ten years they have raised their dividend per share on average 9.4% annually. The lowest raise was 4.8% and the highest 17.8%.

They have not had a stock split since 2001.

Their payout ratio has had very wild swings that follow their earnings. For example their best year through 2012 was 2008 and they made $45.2 billion dollars and increased their dollars paid in dividends but their dividend payout ration was the lowest of the decade that year at 17.7%.

There is absolutely no reason for an investor to expect after a stock split XOM to increase the dollars in dividends they pay anymore than they normally would. In other words what ever dividend per share you expect to receive prior to a split, expect half of that after a 2:1 split.

XOM is a very good blue chip and there are lots of reasons to buy it--anticipating a stock split is not one of them. Anticipating a stock split and expecting the dividends per share to remain the same or to be something more than 1/2 of the previous dividend per share plus their normal increase is certainly not one of them.

Some good info here.
LINK

Here is chart illustrating how the payout ratio swings wildly depending on earnings.



Here is their SPLIT ADJUSTED dividend history. You can see that adjusted for the split in 2001 the dividend followed the historical dividend increase policy. Some might have assumed from previous posts on this thread the dividends per share were held constant in previous splits. Had they been held constant the per share dividend would have doubled in 2001.

LINK

Their split adjusted dividend in 2001 was 90 cents and in 2002 was 92 cents--actually lower than the increase of 9.4% of late.




This post was edited on 12/29 at 1:09 pm


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ell_13
USA Fan
Alex Box
Member since Apr 2013
22738 posts
 Online 

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


quote:

A 3:1 split would be a break from XOM's usual split policy.
SO?!?






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
81061 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


quote:

SO?!?

So, don't get your hopes up.






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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
21592 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


XOM board has announced they are trying to return more earnings to stock holders and try to get more in line with industry standards (CVX, BP, Shell, COP). As long as they can afford it, I'd expect dividends to increase ~10% each year for the next few years.





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HurricaneDunc
Bowling Green Fan
Houston
Member since Nov 2008
9373 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


Link to this announcement from the board?





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donRANDOMnumbers
New Orleans Pelicans Fan
Lafayette Rouge
Member since Nov 2006
12092 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


Think 100 shares of XOM today is the right move. Wish I would have grabbed more while it sat at $90 the past 2 years.


This post was edited on 12/30 at 9:48 am


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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
21592 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


quote:

Link to this announcement from the board?


You're right. It wasn't a formal announcement from the board. More just from comments from the CEO and their subsequent actions.

This was his quote from early 2012 prior to the rate increase of +20% that year.
quote:

"We are mindful of our competitiveness in the dividend area," Tillerson said at the NYSE. "We know we are on the low end of yield, certainly within our sector."



ETA: And if CVX keeps upping theirs +10%, XOM will do the same in response. They aren't making up much ground at the moment...



This post was edited on 12/30 at 9:57 am


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donRANDOMnumbers
New Orleans Pelicans Fan
Lafayette Rouge
Member since Nov 2006
12092 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


what are your thoughts between CVX, XOM, and COP?

would you go equal percentage of each?







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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
21592 posts

re: XOM hit an all time high this morning, 12/26/13, at $100.23 (split adjusted)


quote:

what are your thoughts between CVX, XOM, and COP?

would you go equal percentage of each?


I'm in the O&G business so I don't invest in them long term as I try to diversify my financial risk. I'm also negative on the future price of oil because I think exploration has been so profitable for a long period of time, we will see large amounts come on line in the future. I think XOM is a bigger natural gas player and may be better suited for longer term growth in that area if the price continues to increase. But I honestly have no clue what the future for any hold. I'm sure each will still be here in 50 years.






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