I'd rather that IMO eliminate the dividend and just buy back tons of stock. IMO is cheaper than XOM.Eexxon does not WANT the dividend. It's a bother to have around. Thus IMO only pays 1% or so. What Exxon wants is IMO to build up RESERVES. XOM owns 70% of IMO, so XOM can book IMO's reserves...XOM is starving to show reserve buildup on their books for Wall Stteet. IMO is an easy way. Thats why IMO poured money into Kearl and the ongoing Kearl phase 2 expansion. It's also why XOM bought recently Celtic Exploration and had IMO come in w/ 50% (or $1.5 billion). IMO hasa great asset base and stock is very cheap. Kearl is ramping up big and oil prices higher now.but IMO is still very low price, comparatively. if IMO was really shareholder friendly..a 1% dividend means #$%$..eliminate it and buy back stock. If IMO was ever bought out, it would get offers well over $60 (but XOM won't sell). So why not buy back tons stock at $40? IMO does not buy back any stock hardly, if ever. Screw teh 1% dividend. I just have to pay mopre TAXES on it. Buy shares back, get me LT capital gains.
Eliminating the IMO dividend woudl free up $390,000,00 a year. They could buy back 10 million shs a year, or pay down debt, or buy new prospects. But this 1% dividend is silly. IMO will NOT get other investors who buy the big integrated oils for the div....XOM will not allow an IMO dividend of 3%. XOM wants IMO to build XOM's reserves! The 1% div won't bring in investors, and the ones here buy for VALUE and ASSETS, not a stupid 1% dividend. I get the dividend and then i have to pay TAX on it. There is a reason whty warren Buffet will not pay a dividend in Berrhshire....because it is taxable and a waste of money! Warren reinvests what he woudl pay in divs. I say IMO should plow the $390 million of divs, into buying back stock and paying down debt. No one really cares about a taxable 1% div....so why do it?