IB Net Payout Yields Model

Exxon Mobil: Dividend Should Be At Risk

Exxon Mobil continues to boost net debt levels in order to pay massive dividends.

The energy giant continues to cut investing in the future in order to pay an 8.3% yield while watching the stock collapse.

The stock isn't investable until the company cuts the dividend at least 50% similar to BP.

After another quarter of massive amounts of cash exiting the balance sheet in favor of debt, Exxon Mobil (XOM) investors should want the energy giant to consider cutting the dividend. The biggest issue is that the company can't afford to correctly invest in the future with the massive dividend overhang. My negative investment thesis continues to project the stock having less value due to $15 billion in annual payouts causing irrational asset sales and volatile capital spending decisions that hurt investors.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please read the disclaimer page for more details. 

Popular posts from this blog

Aurora Cannabis: Deal Or No Deal

Occidental: Still Producing Too Much Oil

Celsius: Unaltered Growth Story