Daily Stock Pick: ExxonMobil

A portfolio of stocks I've been building since September 3 is named Volio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the first of five energy sector stocks striving to join my Volio folio. This could be my twenty-sixth pick for Volio!

That energy sector includes six industries all related to bringing oil and gas to market. They are: drilling, exploration and production (E&P), equipment and services, integrated, midstream, refining & marketing.(Those six oily and gassy enterprises.)

My subject today is a large-cap oil and gas integrated operation named, ExxonMobil Corp. Their trading ticker symbol is XOM. This is my first report about ExxonMobil Corp.

ExxonMobil is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2018, it produced 2.3 million barrels of liquids and 9.4 billion cubic feet of natural gas per day. At the end of 2018, reserves were 24.3 billion barrels of oil equivalent (including 4.2 billion for equity companies), 65% of which are liquids. The company is the world's largest refiner with a total global refining capacity of 4.7 million barrels of oil per day and one of the world's largest manufacturers of commodity and specialty chemicals. It operates its business divisions in North and South America, Europe, the Middle East, North and sub-Saharan Africa, and the Asia-Pacific.

 As of December 31, 2018, XOM had approximately 24,696 net operated wells with proved reserves of 24.3 billion oil-equivalent barrels.

The company was founded in 1870 and is headquartered in Irving, Texas.

I use three key data points to gauge dividend equities or funds like Exxon Mobil Corp:

(1) Price

(2) Dividends

(3) Returns

Besides these three, there are several other keys which will finally unlock an equity or fund as one to invest, or not.

These three basic keys, however, best tell whether a company has made, is making, and will make money.

XOM Price

Exxon Mobil's price per share closed at $59.13 Friday, February 21, 2020. A year ago its price was $78.50. Thus, in the past year its market price fell $19.37, or nearly 25%.

Assuming Exxon Mobil's stock trades in the range of $56 to $80 this coming year, its recent $59.13 price could rise by $9.87 to reach $69.00by February 24, 2021, assuming upward price momentum returns.

XOM Dividends

Exxon Mobil's latest declared quarterly dividend was $0.87 payable March 10. That $0.87 quarterly dividend equates to an annual payout of $3.48 and yields 5.89% at yesterday's $59.13 share price.

XOM Gains?

Adding the $3.48 annual estimated dividend to my $9.87 estimate of Exxon Mobil Corp price upside shows a $13.35 potential gross gain, per share, which will be reduced by any costs to trade those shares.

Say we put a little over $1,000.00 today in Exxon Mobil Corp at its recent $59.13 price, that would buy 17 shares of ExxonMobil.

A $10 broker fee paid half at purchase and half at sale would cost us $0.59 per share.

Subtracting that $0.59 brokerage cost from the estimated $13.35 gross estimated gain per share, leaves a net gain of $12.76 X 17 shares = $216.92 or a 21.65% net gain on a $1,005.21 investment.

Therefore, ExxonMobil Corp, shows a possible 21.65% net gain including a 5.89% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to learn if Exxon Mobil Corp, is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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