Best answer: Is Exxon a good investment?

For investors looking to invest in the out-of-favor energy sector, and who don’t care too much about dividends, Exxon remains a solid option. … If you are an income investor, other oil and gas options like Chevron may be a better call right now.

Is Exxon a buy or sell?

ExxonMobil stock isn’t a buy right now. The stock has been struggling with weak energy prices amid the coronavirus pandemic. The oil and gas company is relying on debt and asset sales to help cover its dividend expenses. … ExxonMobil has reduced its outlook on oil prices, according to The Wall Street Journal.

Why is Exxon stock so low?

Rising debt levels and mega capital spending plans in an unfavorable oil price environment led to a steep fall in the stock’s price over the past few years. … ExxonMobil stock has fallen more than 40% in 2020.

Does Exxon have a future?

In December, Exxon slashed its five-year spending plan. The company now plans to spend $19 billion or less in 2021, and $20 billion-$25 billion a year between 2022 and 2025. That’s down from a prior forecast for an annual investment of $30 billion during the same period.7 дней назад

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Is Exxon going out of business?

While it is unlikely that Exxon is going to go out of business anytime soon, lingering low energy prices could lead to a dividend cut. And the oil space, which is what drives the company’s top and bottom lines, is clearly in flux today.

Is Chevron a buy or sell?

Its FCF improvement was encouraging, and its balance sheet remains the best in the industry. With shares still down by more than 20% year to date, Chevron looks like a good dividend stock to buy now.

Will Exxon pay dividends?

IRVING, Texas – The Board of Directors of Exxon Mobil Corporation today declared a cash dividend of $0.87 cents per share on the Common Stock, payable on December 10, 2020 to shareholders of record of Common Stock at the close of business on November 12, 2020.

Is it smart to buy Exxon stock now?

For investors looking to invest in the out-of-favor energy sector, and who don’t care too much about dividends, Exxon remains a solid option. … In fact, while a dividend was once virtually unthinkable, so far the company has only really stated that it will maintain the dividend through 2020.

What is wrong with Exxon?

But Exxon was vulnerable before the pandemic. The loss of cash flow from oil and gas sales in recent months has hit the company especially hard, because many of its expensive gambles in the last decade went bust, including development in Canada’s high-cost oil sands and a scrapped offshore drilling plan in Russia.

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What is the future of Exxon stock?

The 21 analysts offering 12-month price forecasts for Exxon Mobil Corp have a median target of 49.00, with a high estimate of 74.00 and a low estimate of 36.00. The median estimate represents a +19.11% increase from the last price of 41.14.

Will oil stocks ever recover?

World oil demand won’t fully recover until after 2021, OPEC said, as the increase forecasted for next year still pales in comparison to the demand decline seen in 2020.

Is ExxonMobil in financial trouble?

By the summer, the oil industry was facing its worst financial crisis in decades. Exxon reported two consecutive quarterly losses, to the tune of $1.7 billion, despite dramatic cuts in spending. The company even announced it would suspend its contributions to its employees’ retirement savings accounts.

Which oil company is the richest?

China’s Sinopec Group ranks first on the list of the world’s leading oil and gas companies of 2019 with revenues of more than US$430 billion, ahead of Shell and Saudi Aramco.

Is Shell better than Exxon?

In sum, Shell is generating more cash than Exxon but spending less money. And although both companies could do well to improve their balance sheets, Shell appears to be better positioned to legitimately recover from this downturn in oil and gas than Exxon.

Is the Exxon dividend safe?

Payout Ratio

Ideally, healthy dividend stocks will have payout ratios below 50%, but the lower the ratio the better. Unfortunately, Exxon’s payout ratio based on trailing 12-month earnings is now 154.6%. Exxon is not expected to turn a profit in 2020. … Its projected payout ratio based on 2021 EPS estimates is 892.3%.

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