How to Buy Exxon Mobil Stock Now, Forecast and Dividend
Exxon Mobil Corporation has sold its products for more than 100 years, and it is one of the largest enterprises in the industry. The company has successfully adapted its business operation to the changes in the business environment and provided value to its stakeholders for many decades. Hence, Exxon Mobil stock is an attractive asset for institutional and individual investors, which is why different investment funds hold this stock in their portfolios.
Some of the main characteristics that make this stock popular among investors are the company business model, its dividend payments and anticipation for favourable changes in fundamentals which have a crucial role in the positive price forecasts.
Exxon Mobil Overview
The Exxon Mobil group is the result of a merger between two reputable companies in 1999. Exxon Corporation and Mobil Corporation have a long-standing history of business activities related to oil and petroleum products. Accordingly, Exxon Mobil Corporation has been in business for around 135 years, during which time the company has grown to become one of the largest publicly traded corporations in the industry.
Exxon Mobil stock belongs to the energy sector. Its core activities classify under the integrated oil and gas industry. With its headquarters in Irving, Texas, U.S, it has a market capitalisation of around $230 billion in the second half of 2021, with approximately 72,000 full-time employees.
Exxon Mobil engages in the exploration, production, transportation, sale and trade of crude oil and natural gas, and manufacturing of petroleum products and petrochemicals the U.S. and international markets. The company operates through three primary business divisions Upstream, Downstream and Chemical division and its products assortment consists of four brands Esso, Exxon, Mobil and ExxonMobil.
Exxon Mobil Stock Historical Price
Exxon Mobil stock is traded on the New York Stock Exchange (NYSE). Its ticker symbol is “XOM”. You'll find XOM in a couple of well-known indices. Many reputable institutional investors, mutual funds, ETFs, and individual stakeholders, hold Exxon Mobil stock today in their portfolio.
Exxon Mobil stock value reached an all-time high price of approximately $102 in the first half of 2014. Looking at the price chart, we notice that this stock lacks a tendency to sustain a clearly defined long term trend during the last couple of years. The movement in the last decade shows that Exxon Mobil stock price may experience an upward or downward reversal of nearly 30% in less than a year, while reversals of around 10% in a few months are more common.
However, during the last couple of years, Exxon Mobil stock moved between the levels of $68 to $92 until it broke below the lower bound and hit a low price of nearly $32 in the first quarter of 2020 with the outbreak of the pandemic. Nevertheless, the price of Exxon Mobil stock nearly doubled in the following period, reaching approximately $64. Based on Exxon stock price history, we can note that the stock may be fit for different trading strategies. Why? Because it is inclined toward sizeable fluctuations with a tendency for short-lasting upward or downward movements and occasional range-bound movements.
Why Invest in Exxon Mobil Share? Points to Consider
Should I buy Exxon Mobil stocks? To help you get clarity on the matter, here are a few important and determining factors to consider.
A market at the centre of many economic activities
Oil is a versatile commodity used in the production of a large number of products. Oil has crucial importance in economic development and activities as it is one of the primary resources used in the production and transportation of goods and services. Exxon Mobil is among the largest companies in the specific industry, making this stock particularly interesting to individual and institutional investors.
Hence, investors may want to evaluate the past fluctuations in Exxon Mobil stock price and simultaneously examine its fundamentals before deciding whether to take a long or short position with the Exxon Mobil stock.
The strong Exxon Mobil business model and share price
Exxon Mobil business activities are centred around the mass market business model, which implies that the company doesn't make any strict differentiation between customer segments. This enables it to achieve a higher level of efficiency by manufacturing and marketing various oil and petroleum-based products using its production facilities and massive transportation, trade and selling network.
The Exxon Mobil model also incorporates joint venture partnerships with enterprises in different countries and markets in its strategy, which is another of its strengths. Investors should this pay attention to possible announcements for mergers or acquisitions in the upcoming period. Exxon Mobil has a history of acquisitions that created a synergetic effect and increased the overall company value.
Exxon and its sustainable approach to manufacturing
The company is tracking the changes in customer preferences and the increased environmental awareness. Then, it takes the relevant steps to maintain its position among the top companies in the industry. Accordingly, it plans to introduce a business unit aimed at the commercialisation of low-carbon technology and emission reduction through carbon capture and storage.
For instance, Exxon Mobil and Porsche conduct testing of advanced biofuels and renewable fuels with low-carbon levels. The company continues its low-carbon commitment by testing a variety of materials as a potential resource for manufacturing biofuels and the production of innovative energy technology.
A strong Exxon Mobil stock dividend
Exxon Mobil Corporation has a long-standing history of dividend payouts to its shareholders. It is quite interesting that its dividend has grown at an average annual rate of 6.1% during the last 38 years. In 2020 the company paid a quarterly dividend of $0.87 with an annual dividend payout of $3.48 (£2.51) per share irrespective of the negative effects from the economic downturn induced by the coronavirus. The dividend growth can be practically understood by looking at the quarterly and annual dividend payout in 2002, which was $0.23 and $0.92 per share, respectively while the company paid a quarterly dividend of $0.87 per share in 2021.
Based on the payouts, Exxon Mobil stock dividend yield is estimated at 6.4%, which is higher than the estimated sector median dividend yield of around 5%. The dividend payment is one feature that makes this stock alluring for investors even when the stock price may record unfavourable movements. The company pays its dividend quarterly, and the payouts are made in cash.
Exxon Mobil Stock Forecast and Prediction
Estimates regarding the future movements in Exxon Mobil stock price should be based on the effects coming from different factors as well as the application of fundamental and technical analysis. By employing evaluation methodologies and analysing relevant factors, investors can reduce the potential risks associated with the price fluctuations of a specific financial asset.
Exxon Mobil stock predictions based on offer and demand
One of the major advantages of this company comes from the products it sells since there is a somewhat stable demand, excluding periods with economic shocks. Also, there is a potential for an increase in the need for oil and oil products, especially in emerging economies.
The International Energy Agency anticipates an increase in the global demand for oil in the next couple of years, reaching a level of around 104 mb/d (million barrels per day). The expected rise in demand represents a potential increase of around 8% compared with anticipated demand in 2021. The possible rise in demand coming from activities associated with mobility and production and the need for petrochemicals might thus positively affect Exxon Mobil revenues level and, accordingly, the Exxon Mobil stock value.
Another factor that should be accounted is the oil production level or the oil supply. In the past, a constant production level during increased demand has led to a rise in oil prices. An increase in oil price might also positively impact Exxon Mobil's revenue and increase its stock value due to improved financial performance. Also, an increase in revenues may contribute toward an increase in the Exxon Mobil dividend price paid by the company, which is an appealing characteristic of this stock.
Exxon Mobil forecast according to analysts
Analysis coming from reputable institutions forecast upward movement in Exxon Mobil in the next period with an anticipated high price of around $90, a low price at the level of $57 while they forecast a median price target at around $66. If analysts’ forecasts come true, it would mean that investors stand to make a gain of anywhere from 20% to 60% based on today's price. Moreover, the stock price forecasts in terms of historical yield and price-to-earnings ratio (P/E) indicate that the stock could reach a level of $75, while analysts also expect to see a potential increase in earnings per share (EPS).
Furthermore, some experts believe that Exxon Mobil stock might be undervalued based on its current price and the fact that it has a strong dividend yield that is higher than the sector median. Exxon Mobil stock forecast assigns a buy rating for this stock for the near future due to the potential to record an increase in value and a strong dividend yield.
Exxon Mobil stock forecast : Technical analysis
When it comes to technical analysis for this stock, it could be noted that there is a lack of consensus about the future price movements when popular technical indicators are employed. When plotted on a weekly time frame, the majority of indicators detect sell signals.
On the other hand, most indicators give a buy signal when the analyses are made on a monthly time frame. However, we should not forget that technical indicators are based on past movements in stock prices, and they don't account for potential changes in the fundamentals and the company's financial performance.
Where Can I Buy Exxon Mobil Stock?
The process of buying Exxon Mobil shares may be intimidating for some investors, but investing in Exxon Mobil stock through CFDs is rather straightforward when you open a stock account with ZFX.
ZFX, buy Exxon Mobil stock with a trading margin of only 5%
The ZFX broker gives traders an opportunity to invest in Exxon Mobil stock with a trading margin as low as 5%, which transfers into the leverage of 1:20. The provided trading margin means that you can now open larger positions with the same amount of capital because you will cover 5% of the position’s value with your investment capital.
How to Buy Exxon Mobil Stock Now
Client-centric brokers such as ZFX simplify the investment process while augmenting client protection. Accordingly, you can invest in Exxon Mobil stock with the ZFX's user-friendly MT4 trading platform by going through few easy steps, as follows:
- Register with ZFX
- Verify your ZFX account
- Make your first deposit
- Buy Exxon Mobil stock
Take a look at the more detailed guide to purchase Exxon Mobil stock on ZFX using its easy-to-understand MT4 trading platform.
1 - Register with ZFX
Opening an account with ZFX starts by going to its website and selecting the desired option that will take you to the registration window. You can see the two options in the next image.
You can either register by pressing the "Open an account" blue button in the right upper corner, or you can select the "Accounts" options from the upper menu and then select "Open a Live Trading Account". After selecting the desired option for opening an account, the following window will emerge.
Then, fill in the form with the required information and follow the next steps as presented in the window.
2 - Account verification
Following a successful registration, you will need to verify your account. You can start by logging into your account and upload any of the acceptable documents:
- National ID card
- Driver’s license
Keep in mind that, as part of the verification process, ZFX may ask you to provide a scanned copy of certain pages. Moreover, you will have to provide a copy of your bank statement.
3 - Make your first deposit
You can now move to the next step and fund your account. To deposit funds, you need to log in to your account by pressing the "MyZFX" button in the right upper corner of the ZFX website. After you log in, go to the "Deposit" options and follow the instructions based on your preferred method.
In its efforts to provide convenience and accessibility to its clients, ZFX offers two methods for depositing funds. These are Bank Wire or Credit Cards. The minimum required deposit is $50 when you register with the Mini Trading Account. ZFX doesn't charge deposit or withdrawal fees.
4 - Buy Exxon Mobil stock
You can now buy Exxon Mobil stock through the ZFX MT4 trading platform. To ease the access and the functionality of the MT4 platform, ZFX gives traders an opportunity to download the MT4 platform for their specific operating system. To do so, select “Platforms” located on the main website.
Then, just follow the instructions. Now, you can log in to your MT4 platform and buy Exxon Mobil stocks.
You can find the Exxon Mobil stock in the "Market Watch" section. By double-clicking the desired asset, you will see the window on the right showing the price movement. This is where you can buy Exxon Mobil stock. Keep in mind that you can trade with zero commissions on ZFX, while the spread for Exxon Mobil is 0.19.
Bottom Line: Should You Buy Exxon Mobil Stock?
The sector and the indicator in which Exxon Mobil place this stock on investors' watch list. Also, the company's ability for business transformation in accordance with the anticipated changes in the market and demand for low-carbon technology makes this stock an alluring investment asset. Labelling the Exxon stock as a potential "buy" comes from the following reasons and expectations:
- The dividend has undergone growth during the last 38 years, with the expectations that dividend will continue to grow
- The dividend yield of Exxon Mobil shares is higher than the sector median;
- Anticipation for an increase in global demand for oil and oil-based products;
- Well defined strategy for marketing and sale through partnerships;
- Partnerships for research and development of new technology and new products;
- Focus on the innovation and creation of low-carbon technology and environmentally friendly fuels;