Investing $1,000 in ExxonMobil shares 5 years back and the current value of those shares.
ExxonMobil Corp, one of the largest oil stocks in the world, has shown remarkable resilience in the volatile energy market. The company's stock was trading at approximately $85 per share in 2007 and 2016, a consistency that sets it apart.
The company's outperformance can be attributed to Exxon's continued investments throughout the last bear market. Even during the oil price collapse in 2020, due to uncertainty surrounding the ongoing global pandemic, Exxon's access to capital allowed the company to invest at rock bottom prices. This strategy, referred to as "counter-cyclical investments" by Exxon's CEO, has paid off handsomely.
Oil prices fell as low as $20 per barrel in April 2020, but by August of the same year, they had rebounded to around $40 per barrel, still one-third below pre-pandemic levels. If you had invested $1,000 into Exxon stock in August 2020, you'd have around $3,460 today. This growth includes dividend income, with Exxon currently paying a dividend yield of 3.5%.
Over the same time period, a $1,000 investment in the S&P 500 would have grown into just $2,000. This stark contrast highlights Exxon's capital advantage and savvy leadership.
Exxon's counter-cyclical investments extend beyond its own operations. The company has expanded relationships with firms like SBM Offshore NV for operations growth in the Caribbean, indicating partnerships with specialized companies in oil services and energy sectors. Investments are generally assessed and managed by internal teams and advisors like J. Herzfeld Advisors, Inc., a specialist in credit investing, although no direct link to ExxonMobil’s counter-cyclical strategies is found.
Today, oil prices hover just above $60 per barrel due to rising costs and geopolitical tensions. Despite these challenges, ExxonMobil shareholders have outperformed the market in the past five years. A $1,000 investment in ExxonMobil in the summer of 2020 could have grown significantly, making it an attractive choice for investors seeking long-term growth in the energy sector.
Data on XOM Total Return Level is provided by YCharts. This news article provides an overview of ExxonMobil's performance and strategies, but for comprehensive financial advice, it is always advisable to consult with a financial advisor or conduct further research.
