Summary
- ExxonMobil has had a difficult time since the start of the oil crash, and the company's stock price has not improved significantly anytime recently.
- Energy demand has grown significantly, as the world has become increasingly industrialized. That should support increased oil and gas demand.
- ExxonMobil has a dividend yield of almost 5% that I expect should continue to increase going forward. I strongly recommend the company as a long-term investment.
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ExxonMobil (NYSE: XOM) is a more than $300 billion multinational oil and gas company. The company is one of the largest publicly traded companies in the world and the largest publicly traded oil and gas company. The company has a dividend yield of almost 5%, and a long history of improving its payout. As we’ll see throughout this article, despite the company’s recent difficulties, it has significant long-term earning potential.
Energy
The lifestyle of humans revolves around energy consumption. As health, standard of living, and education have improved, so too as the world’s energy consumption.
ExxonMobil Energy - ExxonMobil Investor Presentation
Since 1990, the gross national income per capita, across the global average has almost doubled. At the same time, the average life expectancy has increased by 7 years, and the average years of schooling has increased by 2.9 years. All these innovations have been driven in a world with increasing innovation demand. The best way to satiate that demand is still through oil and gas, and that’s where ExxonMobil comes in.
Energy Demand Growth - ExxonMobil Investor Presentation
As the world continues to advance going forward, overall energy demand is expected to increase significantly. A significant portion of this demand is expected to come from gas and oil development. That, combined with decreasing demand from existing fields, means that there will be significant demand and investment opportunities for ExxonMobil.
