Exxon Mobil (NYSE:XOM) stock is getting a boost on Tuesday as investors wonder if the company will increase its dividend this year.
Bank of America analyst Doug Leggate is behind the talk that the company could increase the payout from its dividend in 2021. He says that recovery at the company has it posied for gaining profits that would fuel the dividend increase.
Here’s what the Bank of America analyst said in a research note obtained by Seeking Alpha.
“With growth secured at the bottom of the cycle, planned cost reduction and line of sight to achieve its target range for debt by year-end means that by our estimates, Exxon has capacity to resume dividend growth on both an absolute and per share basis while restoring its balance sheet to pre-COVID levels.”
The idea of a rising dividend definitely appears to be a major point of concern for holders of XOM stock. Here’s another portion of that note from CNBC.
“From our discussions with investors, dividend surety and balance sheet integrity perceived to have been put under unnecessary stress in 2020 seemingly was the catalyst for the adverse shareholder vote.”
So how is this affecting XOM stock today? Shares are seeing a decent amount of trading with some 12 million changing hands as of this writing. To put that in perspective, the company’s daily average trading volume is closer to 25.4 million shares.
XOM stock was up 2.2% as of Tuesday morning and is up 54.1% since the start of the year.
Investors that are hungry for more stock market news today should keeping reading!
InvestorPlace.com has plenty of stock market coverage for today with the latest news that has shares on the move. That includes what’s got DraftKings (NASDAQ:DKNG), Alfi (NASDAQ:ALF), and ContextLogic (NASDAQ:WISH) shares moving today. You can find out all of that and more at the following links!
More Tuesday Stock Market News
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
