Wednesday, January 14, 2015

Recent Buy - Exxon (XOM)

Wow another purchase, that makes two this month after my Unilever buy. I had a standing order to purchase shares of XOM and it triggered my limit order the other day as the markets were tanking. I've had my eye on some energy stocks for some time as they have been taking a bit of a beating with oil dropping like a rock. I could have bought more Chevron as well but I'm fully invested in CVX right now. It is my largest holding and although I'd be averaging down I thought it might be a good idea to add some diversity and purchase Exxon instead.

I knew at the $90 mark XOM should be at a 3% yield and that's great for XOM which has an average 5 yr yield at 2.4% and has a 3yr dividend growth rate of 13.4% as well. Morningstar has set a $108 fair value target for Exxon. Exxon may continue to drop with oil so I may buy here and there if it falls. Stay tuned !

I purchased 14 shares of XOM at $90.00 for my initial position in the company.

Exxon Mobil Corporation is engaged in energy, involving exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas and petroleum products.


Exxon Chart

Exxon Basic Statistics
  • Ticker Symbol: XOM
  • PE Ratio: 11.30 (14.2 forward p/e)
  • Yield: 3%
  • Dividend Growth: 32 years
  • Payout Ratio: 33%
  • Market cap: $380b
  • Beta: 1.08
  • Website: http://www.exxonmobil.com


Exxon Dividend Growth Chart

18 comments:

  1. great buy. im making a buy on friday, but know which one. nov,td,cat,cvx,xom,bbl,hp,afl,and ge

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  2. Good purchase! I liked your comment on CVX because I just purchased that company as my first investment with them. I was opposite of you where XOM already has a pretty decent allocation in my portfolio.

    Either way, buying these beaten down oil companies will hopefully yield greater returns in the future for us!

    Keep up the good work

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    1. Ya they've been beaten down, it will be interesting to see how much lower they go along with oil. The "experts" have been calling a bottom since $70.

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  3. Hi, Captain Dividend.
    I think you found a solid entry point and I think you'll be smiling big in 18 months or so. XOM has a solid management team and I'm sure they'll be able to successfully navigate the current environment without too many blemishes. A person really has had to work hard to block out the noise and stick to the plan during these first weeks of the new year. This is the time when the rubber truly meets the road and fortunes can be made. Best wishes!

    Goosemann Jones
    Flight to Dividends Blog

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  4. Last time I looked over XOM it didn't meet my criteria. Might go back at it now with values you present! ;-) Good one

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  5. Loving this buy. Great way to take advantage of the low energy sector right now.

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  6. XOM is about as safe as you will get in terms of investing in the oil downmarket. I am tempted to add more next week to CVX and XOM but have feeling that better price points may be foreseeable in the future. However I have always been bad with timing....

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    1. I know the feeling, that's why I just quit trying to time the markets or individual stocks and just make a purchase when I have the money to do so, which is usually once a month. Keep in mind my purchase I try and get as much value as I can at the time of purchase.

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  7. XOM is one of the companies I want to buy most, right up there with HP. Hope I can join you as a shareholder when capital allows!

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  8. wow awsome! I recently bought COP too, about 30 shares of it when it dipped to 61. Ive been keeping track of a lot of your blog and its really inspirational, as I want to attain as many divs as possible. right now i have a couple holdings that don't pay out divs, like AMZN and VIPS. if you wanna check out my blog, and how im planning on getting out of 200k of debt to retire as soon as possible, check it out at debt2retirement.weebly.com

    thanks again man great posts ill keep reading them.

    debt2retirement

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    1. Thanks for the kind words. Best of luck on your journey to free yourself of that debt burden. Keep us posted.

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  9. Thanks for sharing this recent buy with us. XOM like make other energy plays continue to be hugely popular among the dividend bloggers. Have you considered other commodity plays that have also fallen in the last 6 months to a year. Namely, iron ore or copper plays? Look forward to your next buy.

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    1. I strongly considered BBL but I just can't bring myself to purchase a semi annual dividend payer.

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    2. I too struggled with the BBL semi-annual dividend. I did buy shares of BBL, but I sure wish they came with a quarterly dividend. I agree with the captain, this is why I have not purchased Disney, an annual dividend.

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  10. With dividends, the younger you can start investing the more you can mitigate risk and the chance that you can get much larger sustained dividend yields. In a nutshell, starting younger means that you can invest in more risk stocks compared with perhaps someone in their sixties who will need more secure bluechip style companies paying a solid but lower percentage dividend yield. http://www.dividendrocket.com

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  11. With dividends, the younger you can start investing the more you can mitigate risk and the chance that you can get much larger sustained dividend yields. In a nutshell, starting younger means that you can invest in more risk stocks compared with perhaps someone in their sixties who will need more secure bluechip style companies paying a solid but lower percentage dividend yield. http://www.dividendrocket.com

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  12. This is a great purchase. XOM is the king of energy stocks.

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