Why I went with Conocophillips over Exxon Mobil
Joel is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
In my previous post I went over my goal, plan, etc. See -> http://beta.fool.com/joelstiller/2012/10/24/beginning-journey-investing/15162/
I wanted an Oil/Natural Gas company in my portfolio which if you read my previous post linked above, you will see I chose to diversify by sector. I think that most people would tell you Exxon Mobil (NYSE: XOM) is the better long term choice. They've increased their dividends every year for the last 29 years after all, and they have been paying them out since 1882. While those numbers look great, here's where I take a different perspective lets break it down.
Exxon Mobil (NYSE: XOM)
52-week range: 73.97 - 93.67
Latest Close: 90.43
Dividend Yield: 2.30%
Dividend Yield 5-yr avg.: 2.30%
Conocophillips (NYSE: COP)
52-week range: 50.41 - 59.68
Latest Close: 57.16
Dividend Yield: 4.60%
Dividend Yield 5-yr avg. : 4.70%
If you look at the percent of the swing in stock price, they are about the same. Conocophillips (NYSE: COP) however seems far more willing to give me money, double the return of Exxon Mobil (NYSE: XOM). Conocophillips (NYSE: COP) has been paying dividends since 1934, and has increased them for the last 11 years. If you want more bang for the buck Conocophillips (NYSE: COP) is the better choice.
Think I'm wrong? Take a look at Berkshire Hathaway's holdings.
joelstiller has positions in Conocophillips. The Motley Fool owns shares of ExxonMobil. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.