Exxon Mobil Corporation (NYSE:XOM) is the largest publicly traded stock in the world, with a market capitalization that currently sits at over $400 billion. The stock is the gold standard for the merits of slow and steady investing.
Earnings per share increased 15% to a record $9.70 per share, and the company’s financial position is fantastic. The balance sheet is an absolute fortress, holding a long-term debt to equity ratio of only 5%. In addition, the company is extremely friendly to its shareholders by providing generous share repurchases and dividend increases. Gross share purchases for 2012 were $21.1 billion, and in 2012 Exxon Mobil Corporation (NYSE:XOM) raised its dividend for the 30th consecutive year. The current payout is a solid 2.5% yield at current prices, and the stock trades for a trailing price-to-earnings ratio of less than 10.
Chevron Corporation (NYSE:CVX) is a close cousin of Exxon’s, although it had less success in 2012. Chevron’s full-year 2012 earnings were $13.32 per diluted share, down from $13.44 per share in 2011. To the company’s credit, Chevron’s proven reserves place the company in a great position. Chevron added approximately 1.07 billion barrels of net oil-equivalent proved reserves in 2012, which equate to 112 percent of net oil-equivalent production for the year.
Like Exxon, Chevron Corporation (NYSE:CVX) is extremely well capitalized. At year end, balances of cash, cash equivalents, time deposits, and marketable securities totaled $21.9 billion, an increase of $1.8 billion from the end of 2011. Meanwhile, total debt stands at only $12.2 billion.
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