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Buy Exxon Mobil: High Dividend Yield And Cheap Valuations
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Published Fri, 22 Jun 2012 14:47:50 -0400 on Seeking Alpha
Exxon Mobil Corporation
Executive Summary: Exxon Mobil (XOM) offers one of the highest dividend yields in the Energy Sector. The company's attractive valuations, new exploration activities, a strong balance sheet and cash flows, and continued share repurchase activities warrant an overweight stance on the stock. However, the global slowdown in economic activity and the EU debt crisis remains a key risk to our investment thesis.
Stock price Drivers:
The stock price drivers for Exxon Mobil include international oil prices, technological advancement in the extraction methodology, reducing the cost of extraction and increasing oil production, identification and procurement of high yielding formation fields, OPEC output of oil, refinery margins and the dividend yield offered by the stock.
From the above graph it can be seen that the 2009 dip in oil prices affected revenue and earnings the most. However, stock prices were not affected as severely due to... Read more


