Exxon stock investment information



From 2008-2010, Exxon stock steadily lost value. Declining oil prices turned investors away from this blue chip company. This may make the oil company an attractive investment at this point. It's dividend is now yielding over 3 percent and it may be able to profit some from BP's mess in the Gulf. Fears of government regulation, however, could dampen investor sentiment. Back in 2008, we wondered why Exxon Mobil stock had not not profited more from the large run up in oil prices seen in 2008? There are a variety of reasons for this, including the terrible shrinkage in refining margins and also that the run-up for Exxon stock was a leading indicator of the run up in oil. This tended to be a good thing, however, when Exxon oil prices came crashing down. Exxon profits certainly took a hit, but not as much as independent, smaller companies. The vertical integration of Exxon Mobil Corporation helps soften some of these blows and makes the investment in this energy sector company slightly less volatile than most of its competitors, especially independent ones. Stock in Exxon Mobil remains a valued commodity in any balanced portfolio.


Exxon Mobil is a worldwide energy corporation. Exxon Mobil stock had footprints extending onto to six continents where it explores for oil, natural gas and other energy commodities. From October 2002-2007 the Exxon stock listing returned over 158% to its shareholders, plus nearly an additional 18% in dividends. The last Exxon stock split came in 2001. The Exxon stock symbol is XOM and is traded on the New York Stock Exchange. The company is probably the most widely recognized energy company in the world.


Exxon Earnings History:
Q1 2007: up 13.0%
Q2 2007: up 6.0%
Q3 2007: down 4.1%
Q4 2007: up 20.7%
Q1 2008: up 25.3%
Exxon next earnings report: Q2 2008: $2.44 E

Buy Exxon Stock Long Term?

Exxon oil company has long been the choice of investors seeking a stable energy play. As crude oil prices hit all time highs in October 2008, Exxon Mobil stock reached new highs of near $95, nearly matching the price of a barrel of oil itself. The reality is that the world cannot run without energy. Alternative fuels bouyed by global warming fears can do little to impact the need for oil throughout the world. In fact, demand in emerging markets like China, Vietnam, Russia, India, and Southeastern Europe will continue to push the demand for oil to new highs. This will provide the stock with a nice landing pad should the clean energy revolution come up with an alternative.

Exxon's investment competitors

Those considering a stake in Exxon, may also consider purchasing shares of Chevron Corporation (NYSE: CVX), ConocoPhillips (NYSE: COP), Royal Dutch Shell (NYSE: RDS.A), BP plc (NYSE: BP), TOTAL SA (NYSE: TOT), Valero Energy Company (NYSE: VLO), or Sunoco, Inc. (NYSE: SUN), among others. Those looking for a higher risk/higher return stock among this group, may take an extra look at Royal Dutch Shell, because of its speculative oil shale play in the United States. Its technology in this arena is unmatched and could propel the company into the stratosphere if successful. Nevertheless, the consistency and strength of Exxon Mobil continue to make its stock appealing. Buy Exxon stock? Investors need to make that decision themselves. After the first half of 2009 the Exxon market cap was just under $350 billion.