As part of myGlobal Dividend Growers", purchase of ExxonMobil Corp (NYSE:XOM).
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Investing to become financially independent
dividends
Investing to become financially independent
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Hi Jerome,
It is certain that currently the valuations of the stocks in the oil sector are affordable, on the other hand, the low prices on the barrel of oil risk forcing companies like Exxon to cut their dividend distribution ratio.
Yes, I know that well. It is a calculated risk that I am taking, considering that it is already anticipated in the current price. Unfortunately at the moment there are not many good opportunities and I do not want to accumulate excessive cash either... especially since reserves in CHF stink from an interest point of view. I therefore consider that oil companies are a lesser evil at the moment, always with a long-term perspective. As already mentioned on the forum about oil companies, I make a few exceptions to my sacrosanct principles regarding the payout ratio. I think that beginners in the stock market should stick to the basic principles and therefore rather stay away from the market at the moment, except perhaps for a few rare opportunities here and there.
From a long-term perspective, this makes sense, because the current valuations are very attractive.
Martin
I bought CVX and BP very low, I would like to try XOM but the stock is still too expensive for me. It has dropped little compared to the others….signs of a strong stock?
It is a dividend aristocrat, like CVX. From a P/E or dividend yield perspective, their valuation is not very far apart. XOM has historically had lower volatility than CVX. My various indicators give a slight advantage to XOM.