Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Exxon Mobil Corporation (XOM) a Buy?

Page 1 of 2

We live in a world that has a seemingly unquenchable thirst for energy. Particularly in the emerging markets, it appears as if there’s no end to the amount of energy we consume. As a result, it shouldn’t be surprising the number of extremely profitable integrated oil majors that have pumped out steadily rising profits and dividends for their shareholders for many years.

There’s perhaps no better example of such a company than Exxon Mobil Corporation (NYSE:XOM), the world’s most valuable company at its recent $409 billion market capitalization. With a history that places it among corporate America’s elite businesses, the question for investors now is whether Exxon Mobil can keep its shareholder returns gushing higher in the years ahead.

Exxon Mobil Corporation (NYSE:XOM

Truly a legendary company

From its humble beginnings as Standard Oil, Exxon Mobil Corporation (NYSE:XOM) has evolved over the last 125 years to become a global juggernaut.

Year in and year out, Exxon provides its investors with steady operating results and quarterly dividend payments.

Even better, over the past few decades, Exxon Mobil Corporation (NYSE:XOM) has committed itself to raising its shareholder payout on an annual basis. To that end, Exxon Mobil increased its dividend by 21% in 2012 and then again by 11% early this year.

This year’s dividend bump represented the 31st consecutive annual dividend increase from Exxon Mobil. According to the company, its dividend has grown by 6% compounded annually over the past 30 years.

Of course, Exxon Mobil Corporation (NYSE:XOM) isn’t alone when it comes to energy giants with strong businesses. Competitors ConocoPhillips (NYSE:COP) and Chevron Corporation (NYSE:CVX) share the playing field with Exxon and treat their shareholders equally well.

ConocoPhillips (NYSE:COP) yields in excess of 4% at recent prices and reported strong first-quarter operating results. The company realized 3% growth in adjusted earnings per share through the first three months of the year. Moreover, the company directs investors to the progress being made on several of its growth priorities, including two significant oil discoveries in the Gulf of Mexico.

For its part, Chevron Corporation (NYSE:CVX) generated more than $26 billion in profits in fiscal 2012. Chevron’s immense proved reserves place the company in a great position going forward. Chevron added approximately 1.07 billion barrels of net oil-equivalent proved reserves in 2012, which equate to 112% of net oil-equivalent production for the year.

Chevron Corporation (NYSE:CVX)’s dividend policy is noteworthy in its own right. Earlier this year, the company gave its investors an 11% dividend boost, marking the 26th year in a row of higher dividend payments.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!