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Exxon needs to raise its dividend to boost stock, Wells Fargo says

Published 08/21/2017, 06:58 PM
© Reuters.  Exxon needs to raise its dividend to boost stock, Wells Fargo says
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  • Exxon Mobil (NYSE:XOM) needs to raise its dividend to lift the stock in any meaningful way, as a bigger payout would signal to the market that “lower for longer” oil prices are no longer restraining cash returns, Wells Fargo (NYSE:WFC) analysts say.
  • In an analyst lunch last Thursday, XOM CEO Darren Woods offered no surprises: Its top near-term concern is that OPEC’s production cuts are helping support the current oil price, but while commodity prices will fluctuate, XOM's discipline to high-grade its projects across its segments reduces the risk of misallocated capital.
  • Wells maintains its Market Perform rating and $82 price target on the stock, as there is much to like about XOM but "the near-term drivers of valuation remain neutral based on our outlook, estimates and forecasts."
  • Now read: Exxon Mobil: Is This A Good Time To Buy This 3.8% Yielding Dividend Aristocrat?

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