Just over a week ago we received a nice little check from Exxon Mobil (XOM) in the amount of $92.52 (75 cents X 123.356888). While most of oil-driven angst is surrounding our hopes for Chevron to not decrease their dividend, we’re still a bit concerned about XOM as well.
As for raised, we received one with our last dividend so technically they could go and “pull a Chevron” now and not increase our dividend for 10 more payments. That’s fine with us. A yield of 3.5% is above our target of 3% and this is a company which has weathered all kinds of turmoil in the past 34 years of dividend increases.
Over the past years we have put nearly $11,000 into XOM and our current position sits at a loss of about 4%. Since we’re planning to hold Exxon forever unless there is a dividend cut, we don’t really care what the share price does. Our target position size is actually $13,333 ($400,000 / 30 stocks) so we need to keep buying XOM over the next 5 years which is the time we plan to take in order to build our portfolio (barring some massive market slide where we may accelerate this schedule). With that said, we’re buying $50 a month in Exxon shares and of course reinvesting our dividends as they come in.
Out of all the 11 sectors we’re holding, Energy is the most concerning at the moment due to the price of oil. The nice thing about our objective strategy is that we don’t beat ourselves up about our holdings and make “shoot from the hip” investment decisions based on the latest opinionated article we read on Seeking Alpha. We simply stick with our strategy and rest easily knowing that even if one of our companies “pulls a Kodak”, that positon represents just 3.33% of our entire portfolio. We’re all good whatever happens!