As we enter the end of the fiscal year, investors are still reeling from the impact of the recent Exxon Mobil oil spill in the Gulf of Mexico.
As the company gears up for the next fiscal year and the next presidential election, the market is expecting some additional volatility to take place in the months ahead.
However, the impact won’t be as severe as some investors feared.
Exxon Mobil will still be trading at a high price point in the near term, and that will continue to support its financial performance and the value of its stock.
Exxon Mobil stock is trading at an average price of $69.25, up from a low of $65.80 last week.
The stock is expected to continue to gain momentum as President Donald Trump’s administration focuses on cutting taxes, infrastructure and environmental regulations.
The company is also poised to increase the amount of its cash flow to the company by $2.3 billion.
The increase will allow the company to repay loans made to it and fund dividends.
However a key concern for investors is that Exxon Mobil’s cash flow from operations will be cut to $5.7 billion in the fiscal first quarter of 2021.
That would cut the company’s cash flows by $3.6 billion in 2021.
The dividend increase is expected at the end in 2021, but it will come at a significant cost to the shareholder.
According to a recent report from Jefferies, Exxon Mobil could receive less than $5 per share in 2021 from its cash dividends.
Investors are looking for a dividend increase of at least 20%.
Investors are also wary of the impact that the company could have on the company itself.
Exxon Mobil is the fourth largest publicly traded oil and gas company in the world, and its earnings are the largest in the U.S. If the company continues to pay dividends, its stock will likely decline.