I doubled down on Exxon Mobil (XOM) yet again last week since I believe the oil and natural gas company has considerable earnings and free cash flow upside on the back of rising energy prices. Rising tensions in the Middle East and supply cuts proposed by OPEC point to higher energy prices over the short haul. Exxon Mobil is by far the free cash flow strongest energy company in the industry, and retains large production upside tied to its growing operations base in the Permian. I consider Exxon Mobil’s downside risk to be limited, relative to its peers, and XOM has the strongest dividend in the sector.
I am comfortable doubling down on Exxon Mobil once again. The energy company makes as solid a value proposition as ever: Exxon Mobil has been very profitable and competitive on both a free cash flow basis and a return on capital employed basis in the last five and ten years. The recent uptick in energy prices is encouraging and points to earnings surprise potential going forward. The Permian play provides production upside, and the market environment (Middle East tensions, OECD supply cuts) point to rising energy prices over the short haul. Exxon Mobil is still quite sensibly valued. Strong Buy for income and capital appreciation.
Source: Seeking Alpha
Related Articles:
- Why We Are Dividend Growth Investors
- 3 Higher Yielding, Lower Risk Stocks To Perk Up Your Dividend Income
- 8 Dividend Growth Stocks With Very Little Debt
- 4 Secrets To Finding The Best Dividend Stocks
- What Determines A Dividend Stock's Yield
Why I Doubled Down On Exxon Mobil Yet Again
Posted by D4L | Monday, July 22, 2019 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
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...
-
Finding cheap dividend stocks is critical for another reason. By the time the Federal Reserve meets for the second time in 2023, the central...
-
In short, dividend-bearing stocks are one of the smartest approaches stock investors have available currently. The same is true in strong ec...
-
Investing in passive income can allow you to make money with minimal portfolio management. There are many types of investments to make passi...
-
As 2022 wraps up, many investors are likely looking for ways to position their portfolio for more macroeconomic uncertainty next year. After...
-
Most income-oriented investors focus almost exclusively on the current dividend yield of stocks to decide whether to purchase them. However,...
-
For most investors, the new year brings with it new opportunity. With all three major U.S. stock indexes falling into a bear market last yea...
-
Last year was brutal for the real estate investment trust (REIT) sector. Rising interest rates created two headwinds for the industry. They ...
-
Dividends drive significant returns for Berkshire Hathaway's portfolio. One common theme of Warren Buffett's Berkshire Hathaway is d...
-
With inflation appearing to have peaked and fears of a recession dimming somewhat, investors have some positive catalysts to look forward to...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.