Recent Buy – ExxonMobil
This was an ill timed purchase but I do not regret it one bit. The reason I say that it was ill timed was because the day after I made the purchase the U.S. Energy Information Administration (EIA) released a report highlighting 2 very big factors.
1. U.S. oil production recently reached 12.2 million barrels per day, and remains on track to reach the highest levels in history in 2019.
2. The EIA said U.S. crude oil inventories are at two-year highs.
Armed with these two key pieces of information the markets began to sell off in the oil and gas sector.
Despite this happening, I do not regret my purchases one bit. I had a price point in mind that I wanted to buy at and I was able to purchase about a $1 cheaper than the initial price that I wanted. So even though
I didn’t get the cheapest price possible, I still got a better deal than what I was looking for.
Now, let’s take a look at some metrics for the company.
ExxonMobil Stock Dividend Data
Current Dividend Yield: 4.61%
Annual Dividend: $3.48
Payout Ratio: 75.7%
Dividend Growth History: 36 years
Earnings Per Share: $4.08
PE Ratio: 18.50
Recap of Information on ExxonMobil
ExxonMobil recently reported a weak number for their revenue. It was actually down around 11% YOY. A lot of this was caused by weak margin in the refining and chemical sectors. They also suffered from quite a bit of downtime in both their downstream and upstream businesses.
The company currently has onshore projects going on in the Permian Basin as well as offshore projects like in Guyana, Brazil and recently Cyprus.
Even though they reported a miss on their revenue, they did actually grow their free cash flow significantly quarter over quarter. I consider this very important because it shows that they can easily cover their dividend and share buy back programs.
The volatility in the oil markets are hurting the company currently but they have proven in the past that they can continue to grow their dividend even during periods of weak oil prices.
ExxonMobil Impact on More Dividends
I added 7 shares of ExxonMobil at an average price of $75.45. This addition to my portfolio will add $24.36 to my projected annual dividend income not including the compounding factor. My current position in ExxonMobil contributes $98.18 to my projected annual dividend income.
While it was not the best timed purchase, it did still allow me to add on to a strong position while also lowering my cost basis. With this being my largest position, I have no plans to add to it in the near future unless the price continues to drop. I would probably want to see the price drop below $70 before I would buy anymore currently.
Have you recently purchased stock in ExxonMoil? Do you currently own any shares of ExxonMobil? If so I would love to hear about it.
As always I look forward to reading all of your comments and questions, until then….. happy investing!
-Jason from MoreDividends.com
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Nice job! You got an aristocrat at a phenomenal yield. Enjoy those dividends!
Dividend Diplomats recently posted…How Dividend Investing Reduces Stress
Nice buy I’ve had a couple of small Exxon buys lately they have excellent FCF to continue paying dividends for years.
Doug recently posted…MAIN Dividend increase
It has become one of my largest positions and if the share price keeps going down I would love to add some more.
JAson – Nice pickup. I’ve been adding to XOM over the last year at a wide range of stock prices (highs $60/share to mid-$70/share). It is nice to see you adding to a strong company. In the long run, things will be just fine for XOM. Enjoy the high yield and those increasing dividends.
Thanks for stopping by Bert. I love XOM and look forward to more opportunities to add some more to the position.
I’ve been watching XOM and CVX. Good chance I’ll pick up one of them next week if we see more market weakness. Congrats on your purchase Jason
Passive Cash recently posted…Goals – 2019
Those are both some good choices PC. I considered starting a position in CVX but felt better about building onto XOM at the moment. I look forward to seeing which company that you decide to buy. Thanks for stopping by!