As a longterm ABT holder I am in limbo as to the exact date of the split. This seems like a simple question... However, the answer is very hard to discover. I would like to sell before the split but after Jan 1 for tax reasons. Why the mystery???
I've heard a lot recently about EXC as an investment with good upside and a great dividend. However, looking at this stock and comparing with other utilities brings me to the question ... why has it under-performed? Other quality utilities are near their all-time highs as investors chase yield and drive up the shares. I've looked at some investor research and have not found a plausable answer for this under-performance. Why? The market does not allow true value without risk to remain ... it corrects the price.
Just read an article which stated that XOM 3rd qtr earnings are to be $1.40 Vs. $1.60 for the second qtr. How does this make sense? Oil prices are significantly higher this qtr and look to be higher in the 4th qtr as well. I realize that profits are not solely based on the price of oil and includes things such as refiner margins and downstream revenue. However, there is a correlation between integrated oil profits and the price of oil. How can XOM profits be lower this qtr? Does not make sense to me. By the way, I have owned XOM for over 30 years at a basis cost that is not much higher than the current dividend. If responding to this post, please use factual arguments ratnher than opinioned drivel. If XOM profits are indeed lower this qtr, there are REAL problems with this company.
I am sooo tired of the news links which yahoo provides which are available only to paid subscribers such as Barron's, Cramer, etc. These links provide no service to the vast majority of readers to the yahoo website. All that is accomplished is that the link prvides advertising to these firms. Yahoo should disclose that they are being paid by these firms rather than providing a true service ... I'm sick of it!!!
Just saw the CNBC hero as a guesthost this morning. Why the continuing hero worship? As a longtime follower of GE, it seems to me that the consistent earnings growth of GE throughout the 1990's was due to using GE Capital as slush fund to be used to shore up earnings when needed. This was the legacy of Jack. However, we now see that he worked GE Capital all along ... and this finally blew up with the rest of the financial industry starting with 2007. Why the hero worship of this scammer?
I am thinking of beginning a position in ABB as my research shows some value. Thinking of selling some 17.50 puts as a way of entry. However, one thing still troubles me ... what caused the stock to rise from $5 in 2006 to $30 before the crash. Acquisitions? What? I cannot beleive this 600% increase took place with the same assets as 2006
Is yahoo ever going to update their dividend and assorted data related tom GE and other stocks? GE lowered their dividends some time ago and the Yahoo site shows them at over 11%. Same for other stock which recently lowered their dividends. This site is rapidly losing any relevance as a research tool ... even as a first pass for more in-depth study. YAHOO ... GET WITH THE PROGRAM!!!
Has anyone heard how the recent gov't ban on dividends for those banks using gov't funds inpacts WFC. I know that WFC took part in the funding even though they did not need it. Please only respond if you know the anwser ... not interested in your personal opinions as there are too many opinions without knowledge on this forum.
As a long time holder of XOM since the 1970's, a few observations may be beneficial. The current dividend yield is at the very low end of the historical yield range. the current dividend of $1.60 represents only 1.9% yield. Assuming a 8% compound dividend increase, the dividend would be $3.45. This dividend after 10 years of growth would yield about 4% at the current price which is about $9 under the historical high stock price. This does not bode well for the stock if oil prices are peaking.
Bottom line ... this is a hold for long-term investors ... not a buy for new money.
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!
I can tell that the last anwser to this question was written by a young man. Those who have held a stock for more years than they have been alive, know the importance of dividends. We partially live from this income stream ... buybacks do nothing for my income. Sure fewer shares are outstanding, but that in no way assures that the share price will rise. If the price of oil falls below $80 per share, XOM share price will tank regardless of a buyback. However, a modest increase in the dividend will easily be sustained. My basis cost on XOM is slightly above the annual dividend. Stock sales result in needless tax payments. Yes dividends doooo matter!!!
Splits do matter!!!
I hold a significant number of XOM shares and regularly write covered calls on these holdings ... this is especially true now that the dividend return is 1.5%. A slit in the stock always allows one to increase income from covered calls as the call premium is not proportional to the split but actually higher.
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!!!
I do not read these boards much because of all the B.S. ... mostly contributed by those with very small holdings. Just read the comments about the 3/2 splits. What most do not understand is that when writing covered calls on a position, The total premiums on calls will increase by a greater proportion than the actual split ratio. This means the covered call writer gets a larger premium for the same dollar value of the security. Please stop the nonsense statements that one owns 10K shares, etc. If thats the case, you would have over 900k in XOM alone. Either your extrememly wealthly (over 10 million in the market)in this case ... or a fool for having so much in one security. If the truth be known, I'd bet that most of these jokers have less than a round lot! Those with real assets, do not have the time to post on these forums.
Any rumors or facts about an increase in Exxon's dividend. Has not been increased for some time ... perhaps because they do not want adverse print after record profits. As a holder of Exxon for over 30 years, I think the stock is getting a little pricey ... PEG ratio of well over 2.