XOM ... lets get with the program. As a long-term holder of XOM ... since the early 70's, I am outraged at the dividend yield on this stock. I know that they are buying back billions in stock, but his does nothing for my income. Sure theoretically, it reduces the # of shares and therefore increases earnings per share. The only problem with this is that the market may not reward this if XOM starts falls out of favor. However, a dividend return is real money. 1.5% is nuts ... less than 25% payout. I'm sure XOM is concerned with too large a dividend might not be sustainable when oil prices fall, but his is at an historically low payout. ASK yourself if you would place new money in XOM at $95 ... then why do you want XOM to buy back stock? Better to SHOW ME THE MONEY!!!
The problem with corporations is greed. Money is being made and stock is going up from investors the directors don't need to raise the div. they think they aready have the world by the horns. On the contrary at some point investors leave if for a div. or lack there of, or whatever. The incentive is the dollars (not dollar) paid per share. Ie, bac pays 2.56 per share. I do have extremely large positions in both of these, but, one is for the div and growth, and the other is more so for the growth and then the little div.
Great post. Raising the dividend would increase the value of the stock right now.The buyback doesn't really do anything for the average stockholder. If times get bad they can always lower the dividend.The company should not allow too much profit to accumulate.
Raising the dividend would increase the amount of taxes YOU would pay and reduce the value of the shares you hold. The buyback is directly inncreasing the value of your shares as a result of reducing the number of outstanding shares and increasing EPS.
Are you aware that if the company pays you dividends that it comes from profit? Profit that is taxed and then you get taxed on the dividend?
As an investor, you should be happy that the company chooses large buybacs instead of paying you a larger dividend.
I find that folks who are focused only on the near term and are short-term shareholders look for one time events like the effect of increasing the dividend so they can make their quick profit.
We've held our Exxon shares for almost 15 years now. I'd rather they simply didn't pay a dividend at all and used it all to buy back more shares because then I wouldn't have to deal with it on my taxes or pay taxes on it.
Why would you want the increase in dividends and double taxation? A buyback increases your ownership in the company in a tax free manner. You should be thanking XOM for doing such a good job looking after your best interests.
It seems prudent for the managements of all companies to consider paying out hefty special dividends if the Democrats continue to control the federal government past the Presidential election. They are talking about not extending the lower tax rate for dividends and it seems like a good idea to pay out substantial divdends if the funds are available and will only be taxed at a higher rate in later years. It seems logical that this SHOULD happen, but that doesn't mean it will.
Since you have been in since the seventies your dividend yield must be pretty significant, a helluva lot more than 1.5%. As for buying more at $95, I still see upside. I too would love to see a more significant dividend increase. However, i'm content knowing xom will most likely increase the dividend every year for the forseeable future just like they have done in the past years.
I agree with both of you for both of your reasons, and have owned xom several times and been a long holder for quite some time, and agree with the rev.s they make the div. should be a lot more. I have an extremely large position of bac, and adding with the down ticks, now there is some rewarding dividends if that is what you're looking for. Just an investors opinion, i am long on both of these.
Best wishes to all for a happy and prosperous new year.