ExxonMobil (XOM - Get Report) perfectly fits Warren Buffett's criteria of "outstanding business with an outstanding management." The company has total compound returns (including dividends) of 13.9% a year since 1975. On average, ExxonMobil stock has doubled investor's money every 5 years and 3 months over the last 40 years.
ExxonMobil has paid increasing dividends for 32 consecutive years (yes, ExxonMobil is a Dividend Aristocrat). This is quite an impressive feat considering how volatile oil prices are. It takes a dedicated and shareholder friendly management team (really, several teams over last 3 decades) to consistently reward shareholders. It's no wonder ExxonMobil is Warren Buffett's seventh-largest holding.
ExxonMobil currently has a dividend yield of 3%. The company has decreased its net share count by 4% a year on average through the last 10 years. ExxonMobil is generating a shareholder return of 7% a year on average through dividend payments and share repurchases.
In addition, the company has realized organic revenue growth of about 3% a year on average over the last 10 years. Organic growth of 3% combined with dividends and share repurchases of 7% a year gives ExxonMobil a total shareholder return of 10% a year.
ExxonMobil released its fourth quarter and full year operating results on February 2. The company saw full year earnings-per-share grow $7.60 from $7.37. Earnings-per-share in the fourth quarter of 2014 fell to $1.56 from $1.91 in the same quarter a year ago. Earnings-per-share fell in the fourth quarter due to low oil prices.
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.