Exxon Mobil (XOM) is a multinational oil and gas company headquartered in Irving, Texas, USA. It is one of the largest publicly traded companies in the world and is involved in all aspects of the oil and gas industry, including exploration, production, transportation, refining, and marketing of petroleum products.
Exxon Mobil was formed in 1999 by the merger of Exxon and Mobil, two of the world's largest oil companies at the time. The company operates in over 200 countries and territories around the world, with major operations in the United States, Canada, Europe, Asia, and the Middle East.
Exxon Mobil is known for its high-quality gasoline and other refined products, as well as its lubricants, chemicals, and other specialty products. The company also has a significant presence in the natural gas industry, both in production and transportation.
Over the past 12 months, XOM is up an impressive 23%:
In just the past 4 trading days, shares of XOM has dropped from almost $120, to about $109. That's because oil prices have seen a dramatic sell-off in the past month:
This drop in XOM, could be an opportunity for dividend investors to scoop up shares of high-quality stock at a lower price. Especially if you believe that oil prices will rebound this summer as we enter the driving season and tensions with Russia still remain elevated.
Other reasons to consider scooping up XOM is that the company reported an impressive Q1 earnings release last weel. They achieved a, “record first quarter following a record year,” of $11.4 billion of earnings. This figure exceeded Wall Street analysts expectations.
The company’s free cash flow (FCF) was 5.3% higher than last year's $10.8 billion. Its 91 cents quarterly dividend cost just $3.7 billion, and share buybacks cost $4.3 billion. So shareholders' returns were $8.1 billion, leaving $3.3 billion for debt reduction.
Exxon Mobil has had 20 years of continuous annual dividend hikes. It recently declared the third quarterly dividend at 91 cents and has said retail and large investors can expect another dividend hike after the next quarterly announcement.
This stellar earnings report and the company's notable shareholder return track record have made it popular with investors who short cash-secured out-of-the-money (OTM) put options to create extra income.
For more information, read Rick Orford's article about XOM.
On the date of publication, Andy Mukolo did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
