Hey everyone. What's your thoughts on adding xom to stock portfolio? Good? Bad?
Hey everyone. What's your thoughts on adding xom to stock portfolio? Good? Bad?
I would like to hear this too. The stock is falling again, but the dividend is great. If they cut that dividend down, hang on!
I think the dividend getting cut is the main concern with it. Look for it to bounce pretty quick from where it's at, or fall below support I'd say.
XOM price is tied to the price of oil. Many investors had expected oil to go to $100---until Opec announced that they will be adding 400,000 barrels/day per month to the market. This should keep oil in the $60-$80/bbl for a while. So, I expect XOM to be range bound until oil breaks $80/bbl.
That said, I own XOM and will continue to hold as I feel it is a good investment. If they were going to cut the dividend, they would have done it during the pandemic when cash flow was nil. Now, with higher cash flow, there is little reason to cut. I expect another 25% leg up, but unsure when....might be 12-18 months. Oil will go to $100 some time in the next 1.5 to 3 years.
I'm usually wrong when it comes to oil and oil companies. Probably my biases. That said, I wouldn't be surprised to see $100 oil next year. I would be surprised to $50 next year. We might get a big pullback in the fall depending on this Delta variant stuff. The things I have read make it sound like the US shale producers are hesitant to really increase production. They need the higher prices to remain solvent, and if they increase too much, that drives the prices down and they lose money.
Thanos was the hero
Thanks for the replies. I bought some shares when it fell below $55 the other day. As with all stocks I guess time will tell. The dividend yield is attractive which is why I bought some shares.
With it declining, I dumped my XOM a couple of years ago. I just don’t see oil stocks as being a great long term investment anymore. Much against the advice of my financial adviser and, in anticipation of a switch to EVs, I pulled money from XOM and put it in TSLA.
XOM and all big oil was a great buy last year. I exited with a nice profit. I wouldn't get into oil now though unless there was a massive dip and I mean like 30%+ massive dip....
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I think this EV craze will have hiccups, slip on delivery dates, etc. and oil will be needed more than anticipated.
Good luck!
It's not what you can take with you,
It's what you leave behind.
1994 Ranger 492VS
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24v 47" Lowrance Ghost / Lowrance HDS
Bump for thoughts?
I've got a 37 dollar average from buying last year, so I'm planning on just collecting and reinvesting my didvidends until I die or it hits 100. I trimmed all my other oil and gas positions for big gains and diversified those funds a bit into some greener energy. Still waiting for those to pan out. I would feel confident in getting in under 50.
All oil stocks are getting hit hard right now. Ouch for me! But, I do think that oil prices will recover to the $70-80 range shortly. There is just no way for the world to run right now without oil at that price. By " shortly", I mean the next 12 months. So, I am holding my oil stocks with nice dividends--they should run in price again later.
I’ve been holding XOM since 2011 while reinvesting the dividends, so I’ll just continue until they turn out the lights.
Might be a better bet to buy an oil ETF that pays a good Dividend like FENY.