Exxon Mobil Corporation (XOM): Is BP plc (ADR) (BP) a Buy After the $8 Billion Buyback Announcement?

Interestingly, BP seems to be the least profitable company with the lowest operating margin at 4%, while the operating margin of Exxon Mobil Corporation (NYSE:XOM) is 13%. Chevron is the most profitable with the highest operating margin at 16%. Income investors might love BP the most with its juiciest dividend yield. BP pays shareholders a forward dividend yield at 5.1%. Chevron ranked second, paying dividend with a yield of 3%, whereas the dividend yield of ExxonMobil is the lowest, at 2.6%.

The $8 billion share buybacks would have a yield of nearly 6%. Thus, if a buyback yield is included, the total yield to shareholders will amount to as high as 11.1%.

My Foolish take

All of those three major oil companies could be considered long-term positions due to their global footprints, strong proved reserves and capital structure. Despite the highest valuation among the three, income investors should really consider BP for its high dividend yield and the potentially high total yield in the coming year.

The article Is BP a Buy After the $8 Billion Buyback Announcement? originally appeared on Fool.com and is written by Anh HOANG.

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