|Bid||67.34 x 1100|
|Ask||67.60 x 3200|
|Day's Range||67.03 - 69.53|
|52 Week Range||64.65 - 87.36|
|Beta (3Y Monthly)||1.17|
|PE Ratio (TTM)||16.26|
|Earnings Date||Oct 31, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||3.48 (5.00%)|
|1y Target Est||82.43|
Inventories of U.S. crude is dropping, allowing oil prices to steady. The price of crude was boosted on an approximately 3 million barrel drop, twice as was expected. Yahoo Finance's Jared Blikre has Wednesday's commodities report.
The U.S. is warning Greece against hosting the Iranian oil tanker at the heart of an international dispute, and Saudi Aramco has reportedly chosen Lazard and Moelis as the investment firms to lead its IPO. Yahoo Finance's Jared Blikre has Tuesday's commodities report.
Exxon Mobil Corp, Schlumberger Ltd., Biogen Inc. and Honda Motor Co. Ltd. have declined to their respective 3-year lows Continue reading...
Several of my InvestorPlace colleagues have written about Exxon Mobil (NYSE:XOM) lately. Most of the commentary quite positive. Several recommending you buy Exxon stock for the long haul. Source: Jonathan Weiss / Shutterstock.com David Moadel's August 20 headline read, Fill Up on Exxon Mobil Stock Now for an Imminent Rebound. Tim Biggam's August 14 article stated, Exxon Mobil Stock Is Ready to Start Pumping Again. I'm nowhere near as enthusiastic about the integrated oil giant's future stock trajectory, but I appreciate their confidence nonetheless. InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn my most recent article about XOM stock, I recommended that investors ought to wait until it dropped into the $60s before buying. On July 9, the date my article was published, it was trading around $76. As I write this, it's trading around $69.67. A couple of days earlier it was even lower. * 10 Marijuana Stocks That Could See 100% Gains, If Not More Time to buy?Before you do, I'd consider the ramifications of its recent fixed and floating notes offering on the company's debt before pulling the trigger. Here's why. Exxon Stock and DebtToo often, we look at a company's balance sheet, see that its long-term debt is only a fraction of its total assets, and assume that it's financially sound. Chances are you're right, but it can't hurt to understand the structure of its debt better to be sure. Exxon Mobil issued $7 billion of floating and fixed-rate notes on August 14. The company plans to use the net proceeds of $6.975 billion to refinance some of its existing commercial paper, which averages an interest rate of 2.37%. XOM will also use some of these funds for other general corporate purposes, including working capital, acquisitions, capital expenditures, and other business opportunities. I have to admit; I would love to be in a position to borrow $1.5 billion at 3.095%, repayable in 30 years. Heck, I could be dead in 30 years. I wouldn't be nearly as excited about owning Exxon Mobil's 2049 notes. A little over 3% for three decades. It's an excellent deal for Exxon Mobil, though. Moody's (NYSE:MCO), although it gives the $7 billion in notes an Aaa rating, it does have some reservations. According to Pete Speer, Moody's Senior Vice President: "ExxonMobil's negative free cash flow and rising debt levels in the first half of this year are pressuring its credit profile, particularly with oil prices averaging mid-cycle levels during the period. While this notes offering is refinancing some of the company's debt on a longer-term basis, the company retains ample flexibility to reduce debt through asset sales and strengthen its credit metrics."It goes on to say the Aaa rating, which is better than many of its peers, could get downgraded in the future if it continues to generate negative free cash flow while its level of debt moves higher. How Much is Too Much?In its prospectus for the notes, the company mentions that its long-term debt, currently $19.0 billion as of the end of June, is 8.7% of Exxon Mobil's total capitalization. Add in the $7 billion in notes and it increases to 11.6% of its total capitalization.That's still a minimal amount. By all accounts, Exxon Mobil's debt is perfectly manageable. However, what happens if it decides to make a multi-billion acquisition? As Moody's suggested, the company's free cash flow was negative in the first six months of the year. A significant acquisition would most likely add to that shortfall.From where I sit, Exxon Mobil's free cash flow for the first six months appears to be positive to the tune of $2.9 billion (net cash provided by operating activities of $14.3 billion minus capital expenditures of $11.1 billion). However, Moody's likely makes some oil-related adjustments to come to a negative number. Regardless, I did see an article about free cash flow that piqued my interest. According to S&P Global Market Intelligence, Chevron's (NYSE:CVX) free cash flow over the past 12 months was $18.5 billion, 25% higher than its GAAP profit for the same period. Meanwhile, XOM generated $11.3 billion, 36% lower than its GAAP profit. Furthermore, Barclays believes that Exxon Mobil's free cash flow situation is about to get even worse as it ratchets up its capital investment just as oil prices appear to be falling again. So, while Exxon Mobil has managed to issue debt on a fixed-rate basis between 1.9% and 3.1%, if its free cash flow shrinks, it will have less cash available to pay down the debt in the future. The Bottom Line on Exxon StockOwning XOM stock has been a mug's game over the past decade. I don't think it's going to get much better over the next decade as the world continues to move away from oil. That said, it's got an excellent dividend yield a tad under 5%. If you need to park some money in an income-bearing investment, you could do worse than owning XOM. You could own some of their notes.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Debt Is a Way Bigger Problem for Exxon Stock than You Might Think appeared first on InvestorPlace.
WASHINGTON/NEW YORK, Aug 22 (Reuters) - U.S. President Donald Trump, faced with mounting anger in the farm belt over policies that allow oil refineries to use less corn-based ethanol, summoned Cabinet members on Thursday to discuss ways to boost biofuel demand, four sources familiar with the matter said. Throughout his 2016 campaign that brought him to power, Trump championed ethanol but also courted the oil industry. Trump met with Agriculture Secretary Sonny Perdue and Environmental Protection Agency (EPA) Administrator Andrew Wheeler at the White House, the sources said.
Stocks rallied Wednesday after President Donald Trump implied he's open to making a deal with China on trade, but gains were capped by the release of minutes from the Federal Reserve's July meeting.Source: rafapress / Shutterstock.com Those minutes revealed that some of the central bank's governors pressed for a cut of 50 basis points last month, but they were obviously out-voted as the Fed proceeded with a reduction of just 25 basis points. What put a lid on today's upside for equities were comments that the July rate cut was not necessarily a precursor for more reductions."In their discussion of the outlook for monetary policy beyond this meeting, participants generally favored an approach in which policy would be guided by incoming information and its implications for the economic outlook and that avoided any appearance of following a pre-set course," according to the Federal Open Market Committee (FOMC).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Marijuana Stocks to Ride High on the Farm Bill Currently, Fed funds futures are pricing in another 65 basis points of rate cuts this year, indicating there is room for markets to be left disappointed by the U.S. central bank.Still, the Nasdaq Composite notched an impressive gain of 0.90% today while the S&P 500 settled higher by 0.82%. The Dow Jones Industrial Average tacked on 0.93% amid broad-based strength in the blue-chip index. In late trading, 29 of the 30 Dow stocks were higher. Dow Winners GaloreWhile the Fed minutes may have lacked the punch investors were hoping for, there were some solid earnings reports (non-Dow stocks) out of the retail sector that gave market participants reason to be the oft-discussed recession is a long way from materializing. On that note, Nike (NYSE:NKE) was the Dow's best performer today with a gain of 2.83%.Sticking with consumer cyclical fare for a moment, McDonald's (NYSE:MCD) rose 2.25% after SunTrust analyst Jake Bartlett opined that the company's current Buy One, Get One (BOGO) for $1 promotion won't be a drag on profits. He's got a "buy" rating and $240 price target on McDonald's.The analyst's "research shows that McDonald's new offer is less promotional than its two for $5 mix-and-match deal that the company has cycled through in recent years--meaning McDonald's isn't meaningfully lowering the bar on prices in a way that would force rivals to discount as well," according to Barron's.I'm not saying it's all clear to wade into the energy sector, but it is encouraging to see more positive action out of oil giants Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), both of which traded higher today on the back of some bullish analyst chatter.BMO analyst Daniel Boy said Exxon and Chevron, the two largest U.S. oil companies are the "lowest risk" names and best of breed in the energy patch. Specific to Chevron, that's the second time in a matter of days an analyst has been cheery on the company.Shares of Boeing (NYSE:BA), the Dow's largest component, added 2.49% today on news that the company is looking to fill hundreds of temporary jobs related to getting the 737 MAX passenger back in the air. Wall Street is hoping that will happen by the end of this year and if it does, Boeing shares likely move higher. DJIA Bottom LineIt's easy to get wrapped in the aforementioned Fed "disappointment," if it can really be called that. Additionally, it's easy (and warranted) to be skeptical of President Trump's comments on deals with China because recent history shows this situation is fluid.Maybe what investors should be honing in on is the likelihood of recession. Look at Target (NYSE:TGT) earnings. That stock surged over 20% today on volume that was nearly seven times the daily average because it guided higher. Companies like Target don't guide higher when recessions are right around the corner.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Dow Jones Today: Let's Make a Deal appeared first on InvestorPlace.
(Bloomberg Opinion) -- By all accounts, it was supposed to be a sleepy August for the U.S. corporate bond market. Three weeks ago, the thinking went something like this: Sure, the Federal Reserve would cut its benchmark lending rate on July 31, in what Chair Jerome Powell would call a “mid-cycle adjustment.” But Treasuries were already pricing in such a move on the short end. Further out on the curve, the 30-year yield was about 2.6%, still more than 50 basis points away from its all-time low. Ten-year yields were about 2%, which seemed like a comfortable range for both buyers and sellers. For company finance officers, it had the makings of a sellers’ market but one that would be around once summer drew to a close.Then things got crazy. The 30-year yield lurched lower by 8 basis points on Aug. 1, then 13 basis points on Aug. 5, then another 13 basis points on Aug. 12. After a one-day reprieve near its all-time low of 2.0882%, it cruised through that level, tumbling to as low as 1.914%. The rally was so intense that the U.S. Treasury Department made an unusual, unscheduled announcement that it was again exploring issuing 50- or 100-year bonds. Companies clearly felt they couldn’t afford to pass up this opportunity. In the first full week of August, CVS Health Corp., Humana Inc. and Welltower Inc. headlined $35 billion of debt sales among investment-grade firms, easily surpassing estimates. Then in the week through Aug. 16, more than $22 billion went through, including a rarely seen offering from Exxon Mobil to the tune of $7 billion. Market watchers expected that would just about wrap things up until after Labor Day on Sept. 2.Some finance officers had other ideas. 3M Co. borrowed $3.25 billion on Monday to help finance its acquisition of medical-products maker Acelity Inc. In total, issuers sold $6.65 billion of investment-grade debt on Aug. 19, already topping some predictions for $5 billion this week. Then on Tuesday, Bank of New York Mellon Corp. priced $1 billion at the lower end of its expected yield range, along with a handful of other borrowers with multimillion-dollar deals.All this is to say, companies are simple: They see staggering low yields, and they issue bonds. Investors, for their part, can’t get enough of them. The Bloomberg Barclays U.S. Corporate Bond Index has returned 13.3% so far in 2019. Over the past 12 months, the index is up 12.5%, compared with just 1.5% for the S&P 500 Index. The average spread on corporate bonds has widened to 122 basis points, from 107 basis points at the end of July, but that’s just because they couldn’t keep up with the relentless rally in Treasuries, not because of a lack of buyers. If Bank of America Corp. strategists led by Hans Mikkelsen are correct, the demand in credit markets has lasting power. They say the $16 trillion of negative-yielding debt globally has left investors — and particularly those outside the U.S. — with few alternatives besides purchasing companies’ debt. “There is a wall of new money being forced into the global corporate bond market,” they wrote on Aug. 16. “Given the near extinction of non-USD IG yield, foreign investors are forced to take more risk.”Of course, buying investment-grade bonds hardly qualifies as a speculative endeavor. Exxon Mobil, in fact, has the same credit rating as the U.S. government from both Moody’s Investors Service and S&P Global Ratings. On the other hand, Bloomberg News’s Jeannine Amodeo and Davide Scigliuzzo reported this week that three leveraged-loan sales that had been languishing in the U.S. market for weeks were pulled as investors sought higher-quality assets. Vewd Software became the fourth on Tuesday, scrapping a $125 million term loan due to market conditions. Leveraged loans, it should be noted, are floating-rate securities and so face weaker demand when the Fed appears poised to cut rates, as it does now. But for large, highly rated companies, their behavior in recent weeks is exactly what should be expected. Exxon Mobil issued 30-year bonds to yield 3.095%. In November, five-year Treasuries offered the same amount. 3M, rated a few steps below triple-A, priced 30-year debt to yield 3.37%, less than the going rate on long Treasury bonds just nine months ago. No matter how you slice it, they’re getting borrowing costs that seemed unthinkable around this time last year.Interestingly, these low yields should be encouraging governments to borrow more, too. I wrote last week that the bond markets were begging for infrastructure spending. However, it seems neither Germany nor the U.S. has any appetite for that sort of initiative. The German government is reportedly preparing fiscal stimulus that could be triggered by a deep recession, while President Donald Trump hasn’t ruled out a payroll tax cut to stave off any economic weakness.It’s certainly possible that U.S. yields will only fall further from here, and other companies can also borrow or refinance at rock-bottom interest rates. But the move in global bond markets in recent weeks could was extreme, to say the least. The weak demand for Germany’s 30-year bond auction on Wednesday, which offered a coupon of 0% at a yield of -0.11%, suggests there are at least some lines that investors won’t cross.For prudent companies, it was well worth delaying summer vacations to get their deals done.To contact the author of this story: Brian Chappatta at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Oil and gas stocks aren’t much loved by investors now, but BMO analyst Daniel Boyd thinks Chevron can outperform because of its strong presence in the Permian Basin and its sustained 5% dividend growth.
Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date. What Happened? On this day 21 years ago, Long Term Capital Management lost $533 million on Russian bonds. ...
[Editor's note: "10 Stocks That Every 30-Year-Old Should Buy and Hold Forever" was previously published in April 2019. It has since been updated to include the most relevant information available.]By the age of 30, you should already have nearly a decade's worth of retirement savings under your belt. If you don't, you're not alone. A recent GoBankingRates survey showed that nearly half of the millennials questioned had no retirement savings at all.If you fall into that camp, keep in mind the old saying "better late than never," because it absolutely applies if you're only just starting to build a nest egg. If you just hit the big 3-0 and you've already been saving and investing for years, bravo; however, 30 is a great milestone to look over your investments and rebalance your portfolio with some of the best long-term stocks out there. InvestorPlace - Stock Market News, Stock Advice & Trading TipsUnlike in your 20s, risk is a much larger consideration a decade later. The market is bound to go up and down, and you have to assess whether or not you could handle a market-wide pullback. Moreover, you will want to keep some powder dry to buy on a dip. Income stocks that pay dividends become important stocks to buy at this stage, but choosing some riskier players shouldn't be completely off the table. * 10 Undervalued Stocks With Breakout Potential Of course, investors in their 30s should be holding some of their money in an index fund that will provide conservative growth. But here's a look at ten of the best long-term stocks to buy if you're in your 30s: Best Long-Term Stocks to Buy: Disney (DIS)I recommended Disney (NYSE:DIS) stock when the company's share price dipped below $100 following a racist tweet from Roseanne Barr, the star of one of the company's most successful sitcoms back in 2018. Disney responded by immediately canceling the show and distancing itself from Barr's hateful outburst, but investors worried that the loss of advertising from the canceled show would hurt advertising income.Since then, the market has come to its senses and DIS stock is back to trading above $135 per share.There are a few reasons Disney is one of the best long-term stocks to buy if you're building a portfolio in your 30s. The first is that the company is ripe for a major comeback.Disney is a solid company with a great deal of cash behind it. That means that even in the worst-case scenario, the firm has the money to spend on building out a streaming service from scratch and weather any storms that loom over the media space in the future. The firm also pays a respectable 1.3% dividend yield that will help balance out concerns about growth due to the firm's size. Netflix (NFLX)Another player in the streaming space worth considering one of the best long-term stocks to buy is Netflix (NASDAQ:NFLX).If you missed the boat on NFLX back in 2015 when shares were trading below $50, it might be a hard pill to swallow, but NFLX is still an excellent long-term bet despite the fact that its share price is over $300 today.The reason is that Netflix still has a long growth runway before investors should start to worry about the company becoming too large to produce the kind of growth they've become accustomed to. A company like, say, Apple Inc. (NASDAQ:AAPL) has a market cap of nearly $900 billion, making it unlikely that the firm can continue to grow at the same clip over the next decade. Netflix's market cap of $150 billion leaves plenty of space for the firm to catch up to its fellow FAANG peers over the next decade. * 10 Undervalued Stocks With Breakout Potential NFLX has the growth potential to do so as well. The company has proven that it has a good grasp on the population's ever-changing tastes, and although it has been expensive, Netflix's original content has been a huge draw for subscribers. While the U.S. market has been saturated, NFLX has only just begun its international expansion, leaving a long growth runway for the next few years.Over the past two years, Netflix has been preparing for a major push overseas, and those efforts are due to pay off over the next decade. GHB Insights' head of technology research Daniel Ives said he sees Netflix international expansion opening a potential market of 700 million subscribers in the next 2 years.So, although the streaming space is certainly getting more crowded, NFLX appears to have created a winning formula that makes it one of the best long-term stocks to buy and hold on to. Procter & Gamble (PG)Procter & Gamble (NYSE:PG) is one such stock to buy that, although boring, is a buy-and-hold-until-you-retire kind of stock.As I mentioned above, risk assessment is a huge part of building your portfolio in your 30s, and although you still have plenty of time to let risky bets play out, you should be thinking about adding some low-risk, solid stocks to your portfolio that will keep ticking along as the years go by.What makes PG stock one of the best long-term stocks to buy is that the company's management has a long history of maintaining a healthy cashflow and delivering shareholder returns and its 2.90% dividend yield will provide a reliable income.Not only that but PG's widely diversified business offers investors some security in times of economic trouble. Plus, PG sells a wide variety of necessities like toothpaste and soap, which are unlikely to take much of a hit even in the case of a recession.Increased competition is definitely something to keep in mind when considering PG, but the firm's strong financial position means it has the leeway to refocus its strategy and continue thriving in difficult conditions. Exxon Mobil (XOM)If you haven't started wading back into oil and gas stocks yet, now's your chance. And Exxon Mobil (NYSE:XOM) is one of the best long-term stocks to buy for a few reasons.Now that oil prices are starting to recover, it's worth revisiting the industry. The crash in crude oil prices helped weed out weaker firms and those that survived are coming back stronger than ever with more efficient operations and better future prospects. However, worries about oversupply are still in the forefront of investors mind, which has kept the sector from becoming too expensive.First, XOM's share price is still well below its 2015 highs, giving it plenty of room for a turnaround in the coming years. XOM stock is also working on an aggressive new strategy that includes a $2 billion pipeline in the Permian Basin. The firm also sees potential opportunities in Guyana and Brazil which are expected to help XOM ramp up production significantly over the next few years.Of course, oil prices will play a major role in whether or not XOM's plans are successful, but what's nice about owning Exxon shares is the fact that the company's integrated structure means it's not a direct oil play. So, although that means XOM won't see the same kinds of gains some of its peers do if oil prices spike, that also means it won't suffer the same losses should the opposite occur. * 10 Undervalued Stocks With Breakout Potential XOM also pays out a 5.1% dividend that has been raised every year for the past 36, taking the edge off some of the risk. Walmart (WMT)Discount superstore Walmart (NYSE:WMT) is often overlooked by investors because Amazon.com (NASDAQ:AMZN) tends to be their first choice. While I don't disagree that Amazon is still one of the best long-term stocks to buy, worries about WMT's future are largely overdone.Since being scathed by the ecommerce takeover a few years ago, WMT stock has made an impressive recovery and although the firm is still facing some headwinds, it's a solid stock to buy.Judging by the company's improving e-commerce sales, it looks like Walmart is on the right track to competing against the likes of Amazon. Amazon (AMZN)You'd have to be living under a rock to not have heard all the buzz surrounding Amazon over the past few years. If you haven't jumped on the AMZN stock bandwagon yet, though, there might still be time. Of course, you'd be much better off if you'd bought Amazon stock in 2012 when it was trading at just $200 per share, but the company still is one of the best long-term stocks to buy today.It might seem counterintuitive to consider AMZN when you look at the firm's massive $895 billion market cap and the fact that the company pays absolutely no dividends. Not to mention, AMZN stock has proven to be extremely volatile. However in your 30s you've still got time, and that means there's space in your portfolio for a little bit of wiggle room if you're comfortable with it.Aside from its dominance in e-commerce, Amazon is also a top dog in cloud computing, an industry destined to grow exponentially over the next few years. On top of that, AMZN is spreading its wings in a wide variety of industries including grocery and logistics and there are even rumors that the firm is working to make its way into the healthcare space as well. * 10 Undervalued Stocks With Breakout Potential It's hard to imagine AMZN's market cap getting much larger, but 30-somethings would be remiss not to consider Amazon stock to juice up their gains over the next five or 10 years. Berkshire Hathaway (BRK.B)It would be impossible to talk about the best long-term stocks without including Berkshire Hathaway Inc. (NYSE:BRK.B), run by legendary investor Warren Buffett. Of course, if you're 30 and just picking up Berkshire Hathaway stock now, then you're about to miss the boat in terms of benefiting from Buffett's infamous investing sense. However, that doesn't make BRK.B a bad long-term pick. The company has new fund managers at the helm who've already started taking over some of the firm's investment decisions and you can't argue with the value the firm already possesses. Berkshire has a roundup of defensive stocks that will help the firm ride out troubled markets, but the firm will also keep up with upward market trends. If nothing else, Berkshire stock is a great stabilizer that will round out your portfolio and mitigate against major market events making it one of the best long-term stocks 30-something crowd. Unilever (UN)Another consumer products stock to add to your list of the best long-term stocks is Unilever (NYSE:UN). The company has become massively efficient after undergoing major cost-cutting initiatives over the past few years in order to better compete as the industry became more and more competitive.That bodes well for the future because it means the company will be well prepared in the event of a recession, not to mention that the company sells a wide variety of basic necessities, which tend to continue selling even when purse strings are tight. * 10 Undervalued Stocks With Breakout Potential Another reason UN makes for a good stock to buy is the firm's presence in emerging markets. In 2017, more than half of the company's reported sales came from emerging markets. The company's huge footprint within emerging markets sets it apart from its peers because it creates a great long-term growth runway that others don't have access to. Microsoft (MSFT)Another steady-stock to buy in your 30s is Microsoft (NASDAQ:MSFT). Like a few others on this list, MSFT stock isn't exactly the most exciting stock, but it will do its job and make you some money. Unlike others in the IT industry, MSTF is mature which, in this case, translates to stability rather than falling out of touch with what consumers want. Right now MSFT is working to pivot away from its traditional software business and focusing on growth in its cloud business, which includes subscriptions like Office 365 as well as Azure, Microsoft's answer to Amazon Web Services. Growth in that arm of MSFT's business has been strong. With a P/E of 27 and a dividend yield of just 1.33%, there's no doubting that MSFT is an expensive stock, but you're paying a premium for a well run, solid business that has and will continue to withstand the test of time. Waste Management (WM)It's all well and good to invest in the next hot tech trend or retail story, but if you really want to make a play on future trends then look no further than Waste Management (NYSE:WM), the company that handles everyone's garbage. One thing is for certain, over the next few decades people are going to generate waste, and WM will be there to dispose of it. That makes it one of the best long-term stocks to buy.Not only does WM have a wide moat because of the regulatory permits it holds and its huge network of landfills, but the firm has also diversified its business to offer more than just waste collection and landfill maintenance. Waste Management also handles recycling and has been developing a way to turn landfill gas into energy. That means that as greener living continues to gain traction, WM will benefit as well. * 5 Stocks to Buy With High-Margin Recurring Revenue However, perhaps the most alluring reason to add WM stock to your portfolio is the firm's 1.7% dividend yield. The company has been raising its dividend annually for the past 15 years and there's no reason to expect that to stop anytime soon.As of this writing, Laura Hoy was long AMZN, AAPL, UN and NFLX. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 10 Stocks That Every 30-Year-Old Should Buy and Hold Forever appeared first on InvestorPlace.
A unit of ExxonMobil (XOM) inks a deal to employ a bunker tanker in Singapore for delivering marine fuel with minimal sulphur content to seafaring vessels.
With the price of WTI crude oil having traded in a range between $50 and $60 for quite some time, it's easy to forget that the price is down around 27% since peaking last October. Exxon Mobil (NYSE:XOM) stock isn't exactly outperforming either, as it's down 12% for the past 12 months and has trailed competitor Chevron (NYSE:CVX) by 11% during that time.Source: Jonathan Weiss / Shutterstock.com That lagging performance has turned some analysts bearish on Exxon Mobil stock, but I don't see things like most other people do. If anything, the price differential between XOM stock and its competitors is one of the strongest reasons to start a long position in one of the petroleum industry's biggest and best-known mega-corporations of our lifetime. Buy and Hold XOM Stock for Terrific DividendsIt always bothers me when analysts completely ignore dividends and only focus on the price action of a stock. Dividends, as Warren Buffett has reminded us many times, are one of the keys to long-term wealth accumulation for smart investors. And if any company deserves to call itself a dividend aristocrat, it's Exxon Mobil.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Undervalued Stocks With Breakout Potential For a basis of comparison, we can compare the dividend payout of XOM stock to its chief rival, CVX. Chevron's dividend yield is quite decent at 4.1%, but Exxon Mobil is the clear winner in that category at 5%. It's also worth noting that while Chevron's dividend payout ratio (defined as the company's dividends per share divided by its earnings per share) is a perfectly respectable 58%, Exxon Mobil wins again with a dividend payout ratio of 76%, which is simply outstanding. An Analyst Weighs inIt's all over the financial news that famous British bank and analyst firm Barclays has given Chevron an overweight rating while they've only given Exxon Mobil stock an equal weight rating. That's the equivalent of declaring that CVX is a much better buy than XOM stock right now. I don't concur with Barclay's unfavorable comparison of Exxon Mobil as a long-term portfolio allocation.In defense of her position, Barclays analyst Jeanine Wai explained in a note that Chevron is well-positioned to return significant free cash flow. This brings me back to my previous point, which is that a very healthy 5% dividend yield is precisely what I would call a "significant" flow of cash to shareholders. This is cash deposited into my brokerage account, which I will gladly collect and reinvest right back into more XOM stock.Wai also projects that drilling in the Permian Basin will provide positive cash flow for Chevron in the first quarter of 2020. However, Exxon Mobil is also aggressively drilling in the Permian Basin, with a cash-flow-positive target of 2021. The target is bit later than Chevron, but also a realistic timetable. In any case, no one is doubting that Exxon Mobil has plenty of capital available to drill in the Permian, and the company is planning to produce the equivalent of around 1 million barrels of oil from the region per day. Clearly, there's no slowing down for XOM regardless of the stock price. The Bottom Line on Exxon Mobil StockAs Wai correctly observed, "Energy is currently one big 'Show-me Story,'" suggesting that it's up to each company individually as well as the sector as a whole to prove themselves and justify higher stock valuations. Just as oil itself has been under price pressure in the past year, XOM stock needs to dig itself out of the hole it's created. And that's going to require lots of capital and a strong focus on the Permian. A rebound in the price of crude oil certainly wouldn't hurt, either.I believe that all of these issues will resolve themselves in the near future and Exxon Mobil stock shares will rebound sharply. Most importantly, unlike a certain British analyst, I don't feel the need to compare XOM to any of its rivals. It's a great company on its own, and shareholders can purchase shares with confidence, enjoy the dividends and profit handsomely when the oil price eventually breaks out.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Fill Up on Exxon Mobil Stock Now for an Imminent Rebound appeared first on InvestorPlace.
The South Texas Drilling Permit Roundup is a weekly review of new drilling permit applications filed with the Railroad Commission of Texas for a 67-county area of South Texas.