Exxon Mobil Corporation (XOM): Safe Haven for Oil Dividend Investors During the Oil Crash

Conclusion

While no one knows exactly when oil prices will rise, there is a well-known saying in the oil industry. The cure for low oil prices is low oil prices. Which means that, thanks to over $1 trillion in canceled projects over the last two years, an eventual recovery in energy prices is inevitable.

Exxon Mobil Corporation (NYSE:XOM) will grind on, despite the “oilpocolypse,” just as it has for many decades. And thanks to its best in class, conservative, and experienced management team, this dividend aristocrat’s impressive dividend growth streak should survive the oil crash as it has so many other industry downturns.

While ExxonMobil doesn’t necessarily look like a bargain at today’s price if oil remains low, the company remains a fundamentally safe bet for long-term dividend investors looking for energy exposure in a diversified income portfolio. Compared to other oil majors, Exxon is by far the best bet for safe income. While I am being very careful with our exposure to energy markets in our Conservative Retirees dividend portfolio, I will continue to hold Exxon.

Disclosure: None

Additional Links:

(1) http://www.bloomberg.com/news/articles/2015-07-23/oil-warning-crash-could-be-worst-in-more-than-45-years

(2) http://money.cnn.com/2016/09/28/investing/oil-surges-after-opec-informal-meeting/

(3) http://www.simplysafedividends.com/dividend-safety-scores-review/