Exxon Stock Is Not A Buy Exxon earnings are volatile and should continue to be under pressure as the coronavirus depresses demand. XOM stock also swings with crude oil prices.
Exxon Mobil A Top Ranked SAFE Dividend Stock With 8.0% Yield.
In recent years, Exxon has been increasing its dividend in the second quarter. It didn’t do that in 2020 , holding the dividend the same as the first quarter. And Exxon can maintain the increase streak into next year so long as the dividend is increased no later than the fourth quarter of 2021.
ExxonMobil’s (NYSE: XOM ) troubles don’t seem to be ending. Rising debt levels and mega capital spending plans in an unfavorable oil price environment led to a steep fall in the stock’s price over the past few years. ExxonMobil stock has fallen more than 40% in 2020.
The price of oil is the main culprit in the demise of Exxon’s share price. Exxon is at a crucial point for the dividend if we do not see an increase in the price of oil. Exxon is undervalued currently, but not by as much as you may think. This is not a value play at current levels.
XOM stock may be a solid speculation for the new year, but its long – term prospects are poor. Currently, Exxon shares are down over 39% year-to-date (YTD). Plus, its market capitalization has fallen to $180.5 billion despite a dividend yield of 8.24%.
High – yield stocks with safe dividends in the downturn: Citigroup (C) Discover Financial Services (DFS) Novartis (NVS) Omnicom (OMC) JPMorgan Chase & Co. (JPM) PNC Financial Services Group (PNC) Philip Morris International (PM) Caterpillar (CAT)
It believes that the dividend is safe through 2021 with its latest capital plan (reduction in capital spending to $16 billion-$19 billion) and operating expense reductions without increasing debt, assuming a recovery in market conditions for oil and gas prices and refining and chemical margins to the low level of the
This first quarter dividend is at the same level as the dividend paid in the fourth quarter of 2020.
|Declared||Quarterly||09 Feb 2021|
|Paid||Quarterly||10 Nov 2020|
|Paid||Quarterly||12 Aug 2020|
|Paid||Quarterly||12 May 2020|
Dividend History for Exxon Mobil (xom)
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Chevron has a stronger balance with lower net debt/earnings before interest, taxes, depreciation and amortization of 0.8 versus 1.7 times for Exxon based on 2021 estimates, he says. Chevron has a positive free cash yield in 2020 compared with a deficit for Exxon .
Oil and gas companies are on the mend after a dreadful 2020. Here are some of the best energy stocks to buy for a bounceback in 2021. But as markets have stabilized into 2020’s late innings, oil has bounced back and now sits at roughly $45 a barrel.
While it is unlikely that Exxon is going to go out of business anytime soon, lingering low energy prices could lead to a dividend cut. Exxon , once a stock appropriate for conservative investors, doesn’t have quite the same risk profile as it did just a few years ago.
Oil demand will rebound sharply in 2021, surpassing pre-virus levels, OPEC says. Demand for OPEC-sourced crude oil will recover 25% in 2021 and surpass levels seen in 2019, the global coalition of producers said in a Tuesday report.