5 Dividend Stocks in Adage Capital’s Portfolio

1. Exxon Mobil Corporation (NYSE:XOM)

Dividend Yield: 5.54%

Adage Capital Management Stake Value: $512,123,000

Percentage of Adage Capital Management’s 13F Portfolio: 1%

Number of Hedge Fund Holders: 64

Between June and September, the hedge fund boosted its stake in the oil and gas company by 34%. With a stake of 8.7 million shares worth $512 million, Exxon Mobil Corporation (NYSE:XOM) represents 1% of Adage Capital’s portfolio.

Exxon Mobil Corporation (NYSE:XOM) was recently upgraded to Hold from Sell by Truist analyst Neal Dingmann, who is more optimistic in Exxon Mobil’s shareholder return strategy while concurrently decreasing debt.

Here is what Goehring & Rozencwajg Associates has to say about Exxon Mobil Corporation in its Q3 2021 investor letter:

“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.

What should Chevron expect?

It was recently reported by The Wall Street Journal that Exxon was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publically expressed concerns about both projects.

According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since the production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”

You can also take a look at the 10 Best Money-Making Stocks to Buy Now and 10 Real Estate Dividend Stocks with High Yields.

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