August has been unkind to ExxonMobil (XOM). The oil giant’s shares have fallen 7% this month after reporting disappointing earnings on August 1, after dropping 0.8% to $87.25 today. And investors can add another headwind to the company’s tough time meeting forecasts: its shrinking buybacks. Oppenheimer’s Fadel Gheit and Robert Du Bofff explain:
XOM share buybacks totaled >$210B in the last 10 years, or more than the market value of Shell, but declined from $5B in 1Q13, to $4B in 2Q13 and $3B planned in 3Q13, and we anticipate further declines due to declining free cash flow. We expect increased asset sales, but we think XOM funding share buybacks from additional borrowings is highly unlikely. By reducing the share buybacks, which improved per share metrics and valuation over the years, XOM may instead accelerate its annual dividend growth to boost its total shareholder return.
Source: Baron's
Related Articles:
- Defined-Benefit Pension Plus Dividend Stocks For A Prosperous Retirement
- 5 Dividend Stocks To Buy And Hold, Not Buy And Forget
- Asset Allocation For Income Investors
- 8 Stocks With Strong Dividend Growth Metrics
- 10 Dividend Stocks Balancing Yield And Growth
ExxonMobil: Shrinking Buybacks Hurt, Boosting Dividend Could Help
Posted by D4L | Saturday, August 31, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.