Exxon Mobil Corporation (NYSE:XOM) has been seeing a lot red in 2020 and the stock is already down 20% since the beginning of the year. The last time the stock was this low, you have to go back to 2010.
One reason the stock is struggling of late is the company released its fourth-quarter earnings on Jan. 31, 2020 which fell short of analyst expectations. Exxon reported adjusted earnings per share of $0.41 compared to the $0.43 that Wall Street was looking for. However, revenue of $67.17 billion was above estimates of $64.17 billion.
Unfortunately, even with many countries curbing oil production, the price of oil continues to fall with West Texas Intermediate currently hovering around $50 U.S./barrel.
Concerns about a lack of demand due to the coronavirus and less frequent travel are weighing on oil prices.
But despite the headwinds facing the stock today, Exxon could be an attractive buy for investors. The stock trades at 17 times earnings and only 1.3 times its book value. With the falling price, the stock is now yielding a dividend of 6.1% per year.
That’s a high amount for a top dividend stock like Exxon.
The company typically increases its dividend payments annually and usually it’s in the second quarter, which is coming up, that Exxon normally increases its payouts.
Last year, it increased its quarterly payments from $0.82 to $0.87, a hike of more than 6%. A similar increase this year could make its next dividend payment rise to $0.92.
With Exxon still looking strong and producing good earnings, this could be a tempting stock to put in your portfolio today.
