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Exxon Mobil: This Dividend Aristocrat Is Undervalued And Yields Over 4%

Published Thu, 06 Dec 2018 20:50:59 -0500 on Seeking Alpha

In my last article, "Harnessing Dividends From The Energy Sector In 2019," I discussed Exxon Mobil (XOM) as one of my four ideas. As a Dividend Aristocrat XOM is certainly a poster child for stability and dividend growth through good and bad times. Since XOM’s highs in 2014 of $104.25 per share XOM has not broken $90 since January of 2017. The overall energy story has many tailwinds that should lead to growth, increased dividends and overall appreciation for shareholders as we roll into the next decade. Over the past year XOM has traded between $89.30 and $72.16 while after the most recent pullback closed at $79.43. At these levels XOM is undervalued, which has pushed their dividend past the 4% yield mark. XOM has it all, including growth prospects, a strong balance sheet, reliable dividend income and 36 consecutive years of dividend growth, making them a dividend investor’s dream or a great idea of long-term investors.
A stellar balance sheet to start with
Exxon Mobil is the largest publicly traded integrated oil and gas company in the world. Having been in business for over 135 years their business segments, which include upstream, downstream and chemicals, generated $19.7 billion in earnings and $33.2 billion in cash flow from operations in 2017. Since oil's downward turn, XOM ended 2017 with its highest total equity level for the past five years of $194.5 billion as their liabilities shrunk to the lowest levels in five years of $152 billion and... Read more