Exxon Mobil Corporation (NYSE:XOM) stock is trading at the same level as it was during the beginning of 2019. Even with company-specific positives, Exxon stock has remained sideways due to economic headwinds. As XOM consolidates in the $67 to $75 range, I believe that investors can consider exposure to the stock. In the next five years, Exxon Mobil stock can be among the best performers in the industry.
Between 2019 and 2025, Exxon Mobil expects to generate free cash flow of $190 billion. This estimate is based on oil trading at $60 per barrel. I believe that oil can trend higher in the coming years. Therefore, free cash flows can possibly exceed the company’s expectations. Even with $190 billion FCF visibility, Exxon Mobil is positioned to increase dividends on a sustained basis. In addition, the company will have ample financial headroom for inorganic growth or aggressive capital expenditure. Considering these factors, I am bullish on XOM stock.
Source: InvestorPlace
Related Articles:
- 5 Higher Yielding Basic Materials Stocks With Growing Dividends
- 4 Dividend Growth Stocks That Could Make You Wealthy
- A Roadmap To Build Wealth With Dividend Stocks
- High-Yield Managed Distribution Policy Funds
- 5 Blue Chip Dividend Stocks For When the Chips Are Down
Dividend Investors Need to Take a Closer Look at Exxon Stock
Posted by D4L | Saturday, December 28, 2019 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
In an attempt to put a lid on inflation, the Federal Reserve has stated that it intends to raise its benchmark federal-funds rate by 0.25% a...
-
If you have contemplated selling shares of some of the companies you own this year, you likely aren't alone. Considering how volatile th...
-
Readers may want to do a stock valuation on the stocks in their favorite sectors and wait patiently until they become cheap. Patience is a v...
-
Dividend growth stocks are among our favorite investment groups because you get so much bang for your buck. Not only do the companies pay di...
-
Dividend utility stocks might seem bad for your portfolio during high inflation and rising interest rates. However, the sector has done well...
-
Companies that have either been through past downturns or have the pricing power to offset the costs of inflation provide a crucial element ...
-
Dividend reinvestment plans, or DRIPs, can be effective ways to accumulate shares of high-quality companies for those with limited capital t...
-
We picked up two investments that carry excellent yields combined with some healthy upside in the share price. We also dropped one of our po...
-
If you're wishing you had a little more exposure to income investments right now and a little less exposure to growth, you're not al...
-
The investment choices are limited for those investors who need more regular distributions of income as the vast majority of securities make...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.