Buy this Industry Leader Rewarding Shareholders Now

Companies can do a lot of things with the profits they make. They could continue to expand the business, but after a certain size, most companies start to pay a dividend or buy back shares to reward shareholders.

  • Special: See What One Ticker... One Trade... EVERY WEEK...Can Do for YOU
  • A handful of great companies are able to continually grow their cash flows, and from there reward shareholders with growing dividend payouts, on top of being able to further grow the business.

    That’s the case with ExxonMobil (XOM). The energy production company is making progress on its projects to keep production growing for years to come. And thanks to strong energy prices, they’ve also been able to raise their dividend.

    Exxon is coming off of last year’s high energy prices. So earnings are still down by 60 percent, but they’re starting to trend higher again.

    It’s likely that Exxon shares see a modest recovery from its latest earnings selloff in the coming weeks, but shares may be range-bound for a while given the large acquisition they’re undertaking.

  • Special: Legendary CBOE Trader Reveals: Make This ONE Trade Every Time The Government Drops Economic Reports
  • Action to take: Shares are still inexpensive at about 10 times forward earnings. Investors can also get a hefty 3.4 percent dividend yield at today’s prices, with the chances of further increases in the future.

    For traders, the January 2024 $115 calls, last going for about $2.15, could turn a post-earnings rebound in the coming weeks into mid-double-digit gains.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

  • Special: See What One Ticker... One Trade... EVERY WEEK...Can Do for YOU