08-16-2014, 10:41 AM
As I mentioned in another thread, I've been itching to buy some shares lately, and XOM was on the list of candidates that I mentioned. I'd like to increase my exposure to energy companies, and XOM is an extremely reliable dividend growth stock that seems to be fairly valued right now. I don't own any XOM yet, so it would also be nice to diversify a bit. Most of my oil exposure is via COP, which is about 7.5 percent of my portfolio.
So I'm looking at my spreadsheets, toying with buying some XOM, and I notice that COP is better on some important DG metrics.
COP has a MUCH better starting yield,a noticeably lower p/e, and its earnings growth, while not stellar, has edged out XOM. On the other hand, XOM has a lower payout ratio (though COP's is still comfortably in the low 40s), a better dividend growth rate, and a much better established dividend growth streak (though again, I'm comfortable that COP is committed to growing the dividend).
I'm feeling very swayed by the initial yield to just put any more oil/energy money into COP.
So what do you think -- more COP, or establish a position in XOM for diversification?
So I'm looking at my spreadsheets, toying with buying some XOM, and I notice that COP is better on some important DG metrics.
COP has a MUCH better starting yield,a noticeably lower p/e, and its earnings growth, while not stellar, has edged out XOM. On the other hand, XOM has a lower payout ratio (though COP's is still comfortably in the low 40s), a better dividend growth rate, and a much better established dividend growth streak (though again, I'm comfortable that COP is committed to growing the dividend).
I'm feeling very swayed by the initial yield to just put any more oil/energy money into COP.
So what do you think -- more COP, or establish a position in XOM for diversification?