Up 20% in 12 Months, Is ExxonMobil Stock Really a Buy?
Integrated energy giant ExxonMobil (NYSE: XOM) did something pretty incredible. It managed to increase its dividend every year for over four decades, despite operating in a highly cyclical industry. If you are looking for a long-term energy holding, that alone should make the stock attractive.
But given its strong performance over the past year, there are risks to consider too in investing in the stock at the moment.
The oil and natural gas that ExxonMobil extracts from the ground are highly volatile commodities. Prices tend to rise and fall along with economic activity, making the entire energy sector cyclical in nature. The best companies are prepared to operate well throughout the cycle. And given ExxonMobil's incredible dividend history, it has clearly proven it is among the best in the industry.
Source Fool.com
