The attractiveness of ExxonMobil stock over the past many many decades is that it was the King among the dividend aristocrats. How come now, the rest of them are now larger in market cap than XOM? You know the usual ones that have also been around for a long time, such as Johnson and Johnson, Proctor & Gamble, Walmart, JP Morgan, United Healthcare, and even Comcast which in its own right is a big joke. Coca Cola may also go past as it’s about the same in market cap. Twenty years back if somebody would have said that all of these companies would be bigger than XOM, would you have believed it?
12 replies (most recent on top)
Opportunity costs.
Impunity pays.
I've been waiting for it to get back to $80 (cost basis) but I don't think I will live that long...gotta dump and run. Ouch!
@ugz+1cXfpCyw You need to go find a life constantly downing boomers. Your parents failed at raising a decent human being. Arrogant a-s with no respect for anyone else. Much less yourself. I for one and tired of hearing from you.
As DW would say, only grandma's and grandpa's are currently being catered to by XOM stock. Young and Smart ones have bailed out or stopped investing in XOM stock.
@1xun+1cXfpCyw In the same boat. Was hoping for $67 (my cost basis too high). That makes two of us. There is still hope with constant PIP'ing (not layoff) to reduce cost. Wall Street loves it. It's only a matter of time. As to hard working EM employees ... LOL
Yes, I have 50% of my 401K in the company stock - the con-job 'matching' being the main culprit. I question the ethics of matching contributions with internal stock.
But that's what used to be.
I kept waiting for closing price of 65 a few months back - time to switch all them 'freebies' over to a Voya Mutual cluster. But it never happened.
Now I think it will never happen.
Call me a fool, call me inattentive, call me collateral damage.
But don't call me with a deal for a penny-stock coded 'XOM'.
"High yield" always the tagline I look for when investing capital. Must be great right??? lol
Dividend fixation is for boomers who don't understand investing, capital appreciation, and opportunity costs. That sales pitch from mngt is getting tired after such a long period of underperformance.
Dividends are only a part of total return, not what I'd call an investing thesis on their own. Total return (with DRIP) has been pretty bad for XOM investors vs something as simple as the SP500.
See portfoliovisualizer.com
Unless of course you are the worlds best market timer with XOM and took your dividends, paid your taxes, and invested that money into something better... but lets be honest, most investors has just suffered a huge opportunity cost holding XOM. Hopefully they were not like most XOM employees and actually diversified their investments.
You are confused in your reasoning.
Capital value is irrelevant as is stock price.
We are still Dividend Aristocrats - 10% return in 2021!
Dividend increase 4 quarter
Honestly, yes. I hired in around 2011/2012, and I never put any money in XOM stock. I always felt a tinge guilty about it. I certainly never talked about it, but I recognized a mismanaged company from the start. It would be different if I saw good returns on invested capital, but no matter how I analyzed the numbers, I couldn't justify it. I once advised a RE to diversify when he confided that he was 100% XOM stock. I told him he was too close to retirement to be allocated that way. He laughed at my suggestion. He didn't diversify, and I am certain that he is regretting it now.