Thread regarding Chevron Corp. layoffs

https://seekingalpha.com/article/4349205-chevron-vs-exxon-mobil-significantly-lower-risk-of-losing-money-exxon-mobil

Chevron Vs. Exxon Mobil: Significantly Lower Risk Of Losing Money With Exxon Mobil

  • Chevron and Exxon Mobil are both highly popular choices for dividend investors, despite their volatile earnings.
  • Throughout recent years, the dividend yield of Exxon Mobil has become significantly higher than that of Chevron, as investors worry the former is more likely to reduce their dividend.
  • Based upon my valuations, it appears that this has gone too far and thus investors have a materially lower probability of losing money with Exxon Mobil shares in the long term.
  • Since they are very similar companies, they can be compared with a risk-neutral approach, which does not materially alter the previous findings.
  • Due to their share price rallying, I believe that downgrading my rating on Chevron to neutral is appropriate, whilst I maintain my bullish rating on Exxon Mobil.
by Anonymous
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Post ID: @OP+155xBwc9
Comment! It's anonymous!

5 replies (most recent on top)

XOM has been a very well managed company historically but they have been loading up on debt lately continuing to spend in the current down cycle. Consequently, their balance sheet is getting weaker. If oil stays low for longer it will be a challenge for XOM to continue to borrow to pay the dividend and fund capital program. In contrast, CVX’s balance sheet is in much better shape. They have a different strategy. The stock prices are reflecting this rational. The challenge for CVX is future growth projects but that could be addressed through either new discovery or M&A. This is my 2 cents. Check all the detail financial data in Yahoo Finance or similar website.

by Anonymous
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Post ID: @fxd+155xBwc9

It is a self-serving document for this guy and makes little sense. He only evaluated the dividend, what about the fact that CVX market cap is approaching XOM, who would have thought.

by Anonymous
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Post ID: @ypo+155xBwc9

Always need to read the disclaimer in these articles, every time a writer pumps up a stock you find they have financial interest.

Disclosure: I am/we are long XOM. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

by Anonymous
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Post ID: @dcc+155xBwc9

Yeah yeah yeah...I read the exact opposite about a week or two ago. Seeking Alpha is seldom correct anyway.

by Anonymous
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Post ID: @kbs+155xBwc9

There has been a lot of comment on here as to why CVX sustains its dividend strategy but not one has explained the key determinant that goes a long way to explain this. If you don’t know, you’ll never know.

by Anonymous
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Post ID: @kjs+155xBwc9

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