Exxon Mobil Corp. goes by the ticker symbol XOM and is a member of the energy business sector as large cap oil and gas Integrated enterprise. This is my first report on Exxon Mobil Corp for this Vista portfolio. However, XOM has been selected from a previous DOTW portfolio.
Exxon Mobil, as an integrated oil and gas company, explores for, produces, and refines oil around the world. In 2020, it produced 2.3 million barrels of liquids and 8.5 billion cubic feet of natural gas per day.
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At the end of 2019, reserves were 15.2 billion barrels of oil equivalent, 58% of which were liquids.
The company is the world's largest refiner with a total global refining capacity of 4.8 million barrels of oil per day and one of the world's largest manufacturers of commodity and specialty chemicals.
The company was founded in 1870 and is based in Irving, Texas.
Three key data points gauge dividend equities or funds like Exxon Mobil Corp. (XOM):
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
XOM Price
Exxon's price per share was $62.85 as of yesterday's market close. One year ago its price was $43.71. So XOM's price has gained almost 43.8% in the past year.
Should XOM's stock trade in the range of $30 to $70.00 this next year, its recent $62.85 price might rise by $2.15 to reach $65.00 by July 1, 2022. My estimate is about $0.30 lower than the median of annual price gains estimated by 27 analysts tracking XOM for their brokerage houses.
XOM Dividends
Exxon Mobil Corp's most recent quarterly dividend payout of $0.87 was paid June 10, 2021, and equates to $3.48 annually to yield 5.54% annually based on yesterday's $62.85 closing price. XOM has paid increasing annual dividends for 38 years.
XOM Returns
Adding the $3.48 annual XOM forward-looking dividend to my $2.15 price upside estimate shows a $5.63 potential gross gain, per share, to be reduced by any costs to trade Exxon Mobil Corp. shares.
At yesterday's $62.85 price per share, a little over $1000 would buy 16 shares.
A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us $0.63 per share.
Subtract that maybe $0.63 brokerage cost from my estimated $5.63 gross gain per share results in a net gain of $5.00 X 16 shares = $80 for an 8% net gain on a $1,005.60 investment.
So it is that Exxon Mobil Corp. shows a possible 8% net gain including a 5.54% forward estimated dividend yield.
Over the next year at this time, a $1000 investment in XOM would generate $55.40 in cash dividends. But a single share bought at yesterday's closing price was $62.86! Thus, XOM's share price is about $7.50 above the dividend income from $1K invested. Thus, according to the dividend dogcatcher ideal, wait for Exxon Mobil Corp's price to drop below $60. That is, until the dividend from $1k invested exceeds the single share price, before considering share purchase.
All of the estimates above are speculation based on the past history of Exxon Mobil Corp. (XOM). Only time and money invested in this stock will determine its true worth.
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