Energy stocks are particularly a hard patch to risk on. Primarily, these stocks quickly fluctuate depending on how global resources move, which usually includes political influence — which is also challenging to predict.
Exxon Mobil Corporation — an American multinational oil and gas corporation headquartered in Irving, Texas — could potentially be a worthy basket to put your investments on.
Exxon’s stock (NYSE: XOM) is up 6% so far in 2019, but down 13% from the highs it reached earlier in the year. The stock is yielding roughly 4.3%, which is near the highest levels investors have seen in roughly 20 years. The headwinds causing their stock to come at a lesser price could suggest that now is a good time to invest.
Moreover, Exxon has an impressive 36-year streak of annual dividend hikes despite the crucially sensitive market that it exists on.
“One thing that really sets Exxon apart is its rock-solid finances. A quick look at the company’s balance sheet tells an important story: Long-term debt makes up less than 10% of the capital structure, an incredibly low figure for any company. This conservative financial positioning should allow Exxon to support its growing dividend and capital investment plans even if oil prices fall into a bear market. Investors of all types would do well to take a good look at Exxon today.”
However, like most investments, the oil giant isn’t a risk-free investment. In light of the current political atmosphere, Exxon is doing exceptionally well.
Moreover, amidst the biggest headwind it faces today, Exxon still shows good stock growth. For a couple of years, the company’s oil production was failing to meet demands, which is bad news for any other oil company. Fortunately, the company found a way to bridge the gap during the second half of 2018.
