Friday, September 27, 2013

Stock Bought: XOM

On Tuesday I bought shares of Exxon Mobil (XOM), the largest publicly traded oil and gas company in the world. I have summarized some of my research in an article about XOM that was published today at Seeking Alpha.

I bought 15 shares of XOM at the price of $87.40 per share plus commission, giving me a 2.87% yield on cost. At the current dividend rate, I can expect to receive quarterly dividends of $9.45 from this purchase, which will add a total of $37.80 to my annual dividend income. My forward 12-month dividend total increases to $2,814. This purchase was made in my taxable account by combining some new capital with accumulated dividends. Exxon Mobil is now the 30th stock in my dividend growth portfolio.

It was nice to make a second purchase this month and to increase my portfolio's diversification in the energy sector. I would not mind buying more shares of XOM if the stock price stays in this area, but a few other stocks on my watch list are also in (or near) attractively valued territory. On Monday I should be getting my first full-month paycheck from my new job, so I look forward to seeing how much of it I will be able to allocate toward investments in October.

10 comments:

  1. Great buy. I have XOM as well. welcome co-owner. :)

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  2. XOM looks cheap today. It is also a stock I could hold on to for the next 30 years.

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    1. DGI: I agree -- I think XOM will turn out to be a good long-term investment.

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  3. I like XOM here but I have so much exposure to the O&G industry that I just can't bring myself to add to the positions that I have.

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    1. PIP: The amount of exposure to any particular sector or industry is always an important consideration. For example, last year I invested heavily in railroads, and I probably won't invest new capital in that industry until my portfolio is larger and more diversified.

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  4. Nice purchase! I picked up XOM back in Jan or Feb of this year. I was looking for a SWAN blue-chip and it's worked well so far. It's definitely one of those rock-solid core stocks that I do not worry about holding.

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    1. Warrior: Thanks! I agree with your perspective on XOM -- it should serve us well for many years to come.

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  5. Hi Do u know how to add google portfolio in your blog

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    1. Anonymous: I created my portfolio spreadsheet in Google Docs, then linked to it on Google Drive from my blog. Google Drive has an option to publish to the web that provides code to include on my blog to make the spreadsheet appear.

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