Top 4 Oil Companies For Dividend Investors

Oilprice.com ^ | 26-05-2015 | chase

[bananaman22]

Investing in the energy industry right now can be scary. On the one hand, oil prices have been extremely volatile and look likely to stay that way. On the other hand, while clean energy, especially wind power, is growing rapidly, valuations are astronomical and, for income-focused investors there are few good options.

With that in mind, investors looking for income in energy have little choice but to turn to the safest conventional energy play available; oil majors. Companies like ExxonMobil and Royal Dutch Shell have been around for decades, so regardless of what happens to oil prices, these firms have the capacity to deal with virtually any scenario. Profits will, of course, suffer if oil prices stay below $50 a barrel for years, but unlike smaller players, ExxonMobil is not going to go bankrupt.

[Osage Orange]

Thanks

[Attention Surplus Disorder]

If you decide upon Royal Dutch, be sure to buy the “B” shares which are exempt from foreign tax withholding. Eg; “RDS-B” or RDS.B”.

[wally_bert]

Thanks and bookmarked for later.

[Sam Gamgee]

Still a small gain for a stock market risk. Yes, it won’t go bankrupt, but you can still lose money.

[CPT Clay]

dasterdly oil companies

[Attention Surplus Disorder]

INCIDENTALLY:

*ALL* of these companies >>JUST PAID<< their dividends; more precisely, they all just went “ex-dividend” in early May. In order to receive (be >eligible< to receive) a given dividend for a given stock, you must be a valid owner of that stock on the so-called “ex” date. And more specifically, you have to be a T+3 cleared owner of said stock on the ex date. Diff companies have slightly different policies as to exactly when you have to be long the stock (not options, options are ineligible to rec divs)

XOM: May 11 (and Aug ~11 and Nov ~11 and Feb ~11)
RDS: May 09 (and Aug ~09 and 11/~09 and 2/~09)
COP: May 12 (and Aug ~12 and Nov ~12 and 2/~12)

The key is to be long the common on the ex date.

So what?

This means that there is no need whatsoever to rush out and buy any of these companies tomorrow (even though they got
smacked pretty well today on the ~~$2 drop in oil)

With about 90 days between div eligibility, these stocks went “ex” about 15 days ago, thus one would have about 70 days (giving 5 days for slop) to buy the stock. So if one had a mind to buy any of these long, one could wait to buy same any old time in the next 70 days.