Bought: Exxon Mobil (XOM)

I bought stock in Exxon Mobil (XOM).

Have you noticed the trend in the stocks that I buy? So far, I've mentioned buying stock in Keurig Dr. Pepper, Visa, and now Exxon. I'd guess about 90% of Americans know or heard or used the products of all of these fine companies. I have a couple credit cards with the Visa brand on them. I fill up my vehicle at an Exxon station. I'm not a real fan of Dr. Pepper soda pop, but I do own a Keurig machine that I use sometimes.

There is something special about buying stock in things I know and use that makes holding shares in the company more comforting to me.

Exxon Mobil Corporation is engaged in energy business. The Company is engaged in the exploration, production, transportation and sale of crude oil and natural gas, and the manufacture, transportation and sale of petroleum products. The Company also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and a range of specialty products. The Company's segments include Upstream, Downstream, Chemical, and Corporate and Financing. The Upstream segment operates to explore for and produce crude oil and natural gas. The Downstream operates to manufacture and sell petroleum products. The Chemical segment operates to manufacture and sell petrochemicals. The Company has exploration and development activities in projects located in the United States, Canada/South America, Europe, Africa, Asia and Australia/Oceania.

Just like Visa, this is not my first rodeo with XOM. I sell covered calls against my stocks and XOM was assigned (I plan to do an article about selling covered calls in a future article). Thanks to the recent stock market correction, I was able to purchase shares at a discount. By the way, whenever you can buy a quality stock like XOM that's on sale, it's a good thing.  

I like Exxon for many reasons. As mentioned, I fill up my gas tank with their petrol so I feel like I am supporting my own cause when I pay for gas.

They're a solid, blue chip company and one of the largest in the world. The company has been around for over 100 years and should be around long after I'm gone. They are a money making machine of a company.

Exxon is also a dividend aristocrat. That means they have paid and raised their dividend for the past 40 years. Think about that for a moment. Over 40 years, a lot of things happened in the world and the stock market. Good, bad, and ugly. Still, Exxon Mobil paid its investors AND gave them a raise each year. How can I not like that?

Speaking of their dividend, it is currently yielding over 4%. That's higher than most stocks in the market. Higher than savings and cds and money market rates. By purchasing the shares when the yield is at this level, I'm beating most competing financial vehicles that want my money.  

As are all of the stocks in my IRA portfolios, XOM is an investment, not a trade. While the stock will fluctuate up and down like all stocks do, it is my opinion that the stock goes up near and long term.
Disclosure: I am long XOM

I wrote this article myself, and it expresses my own opinions. I am not receiving any compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: My opinions and strategies of the are not intended to ever be a recommendation to buy or sell a security. The strategies I use have worked for me and it is 100% for you to decide if it could benefit your financial future. Please remember to do your own research and know your risk tolerance.


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