Exxon

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Any thoughts with Exxon?

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IMHO it is a no brainer if you dont need the money for a while.

That entire sector has been lagging behind.

I bought a bunch in the $80's about 4 or 5 years ago and right now it is sad, all the dividends over the years have been nulled by the equity drop. I don't need the money for another 15 or so years but I wonder if I buy more now? If the oil trend is down over the next 15 -20 years I might already be fricked on this particular investment, but don't want to be doubly fricked by putting more in.

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Any thoughts with Exxon?

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It depends on your investment objectives. It is a good dividend stock. It pays a good dividend that are consistently raised. It remains to be seen if it will be a good capital appreciation stock over then next few years as well.

I have owned it off and on through the years. I have mostly stayed away from this sector over the last few years but started nibbling in the last qtr of 19.

I started buying because I see potential capital growth along with very good dividends. Generally improving world economy/easy central banks are good for these type of stock.

I am not going to get carried away with expectations though. With Exxon, it could have a good upside move (around 15% from recent prices) yet still be in a down trend. The sector is in a long term decline and until that trend changes, i remain cautious.

XOM hits 9-year low with dividend over 5%. adding to my position.

Held XOM for decades. Sold 4 years ago and moved into Apple. Much better investment. XOM is good for the dividends but the stock does nothing

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Kinda somewhat a hijack but I’d like to hear opinions of course on Exxon but also BP. If y’all feel the same with BP as maybe you do with Exxon

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I’ve had a small position in BP for several years. I’m not an oil guy by any means. I basically bought it for the 5-something dividend at the time, and it appeared to be fairly valued. The stock is up about 10% from where I bought it. The yield, based on my purchase price, is somewhere around 7.5%.

As long as the global economy doesn’t completely tank, I consider it to be a hold. But given where we *seem* to be in the economic cycle, I wouldn’t be rushing out to buy any of the majors.

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I’ve had a small position in BP for several years. I’m not an oil guy by any means. I basically bought it for the 5-something dividend at the time, and it appeared to be fairly valued. The stock is up about 10% from where I bought it. The yield, based on my purchase price, is somewhere around 7.5%.

As long as the global economy doesn’t completely tank, I consider it to be a hold. But given where we *seem* to be in the economic cycle, I wouldn’t be rushing out to buy any of the majors.

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Thanks for the reply, holding is pretty much all I do with BP. Very seldom buy more.

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I get the headwinds but the downside risk is so limited given its current valuation as compared to many other companies trading a 30x+ earnings. 5.5% divvy for XOM seems not real. I remember everyone excited when they got a chance to finally get in at a 4%+ yield a few years ago.

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And what if XOM has to borrow or sell more assets to cover the existing dividend? Not saying the dividend will be cut, but the company needs to start generating better cash flow than what is currently produced. I'm sure the ongoing clean energy movement is not helping at the moment.

"Exxon stuck with its original 2020 capital expenditure plan between $33 billion and $35 billion, “which we think will result in relatively thin free cash flow in ‘20, but does potentially set the stage for better cash harvesting when end markets ultimately recover,” Glickman said.

The underperformance of Exxon’s downstream businesses in 2019 “has put undoubted pressure on the financial framework” analysts at Citibank, led by Alastair Syme, said. Exxon has long been considered a “defensive” stock thanks in part to its large chemicals and refining units protecting it against a downturn for oil markets.

Results through the fourth quarter confirm “that the company would have needed pretty close to $100/b oil (Brent) to organically cover capex and dividend. In a way, what was once viewed as one of the most defensive oil companies has in fact become quite high beta,” the Citi analysts said."