ExxonMobil (XOM) has gotten up and planted its enormous wealth squarely in the middle of growth. Say what you will about top management, but there is no escaping the fact that XOM has the resources to basically do whatever it wants, whenever it wants, with whatever it wants. I think that when this giant roars, we should listen. Better still, buy the stock.
- Current Price: $80.12
- Dividend Yield: 2.40%
- ESS Rating: Bullish
Click to enlarge.
Take a good look at this chart, going back several years, and note that it was over $90.00/share not long ago.
A short time ago, today, XOM gave its own look into the future of energy, and of the business as a whole (read this release from MarketWatch).
Who could argue with it? It has the largest resources in natural gas, oil, coal -- you name it, they have it. Including more money than we can count. At any given moment, XOM can change everything, and here it is announcing what might be happening right up through 2040.
That is a long time to wait for changes, but while we wait, ExxonMobil still has the oil world in its hand. It is the largest company in asset value. Period. And it did not get there by making many mistakes. I certainly would love to see a dividend over 3-4%, of course, but right now, I see capital appreciation in a big way. Read what CEO Rex Tillerson had to say recently. Why shouldn't he be optimistic? He has all the toys in his room!
Finally, with the always tenuous situation in the Middle East, I believe that oil prices will remain high, and get even higher, especially if tensions escalates. Higher prices mean Higher profits. Especially for XOM.
You may now officially add ExxonMobil to my holiday shopping list. It also seems like today might be a perfect day to buy some shares for my portfolio. Take a look at it. There is plenty of stock to go around.
Disclaimer: This is not a recommendation to buy or sell any stock. Do your own research and decide if it fits into your investment strategy.
Disclosure: I am long XOM.