did anyone tell you I have shares with a cost basis of $6/sh. Include the collected dividends and the effective cost is less than zero. Or look at it another way, my dividend rate is about 25%/yr. Just a little better than a bank CD.
I too have a low basis cost. However, the fact remains that I have over 6000 shrs and only get a cash flow of 1.6% ... unless I sell shares. Selling shares defeats the purpose of LT investing so I'm stuck with a large holding paying almost no cash return. Years ago, this stock had 5-6% range for dividends ... of course, so did the market in general. Now it is the fashion to buy back shares but his does nothing for existing shareholders ... if the company is viewed less favorably by the street those buybacks will see no ROI ... show me the money!
What are you looking for capital appreciation or income? If it is growth then a reduction in outstanding shares (i.e. buyback) is the obvious better case. If you want income, then selling 4 shares isn't violating any LT income investing strategy. Consider: 6000*$88=528000 528K*0.05=26400 528k*0.016=8448 So you are 'short' 18K from 5% cashflow 18k/88=204 shares.
Your holdings are now, $510K. So if XOM price goes up by only $3.10 in the next year (about 3.5%/yr price appreciation) you are in the same situation ($-wise). I.e. if price goes to 91 you still have $528K in XOM investment. And you pay less in taxes.