Exxon Mobil: Ready To Roll - Exxon Mobil Corporation (NYSE:XOM)
Dividend investors should add energy exposure in XOM given the current macro climate. But what must be remembered is that this is the type of scenario that creates opportunities -- and if you are a dividend investor looking to add energy exposure in the current macro climate, you could do a lot worse than XOM. We are already starting to see this in the Energy Select Sector SPDR ETF (XLE), and we expect the lagging activity in XOM to result in similar breakouts in 2018. In the graphic above, we can see that the energy sector is in the supreme position with respect to its ability to capitalize on the broad weakness that is now being seen in the US dollar. The stock is trading at a 28.8 PE, which is still below that of central competitor Chevron (CVX) at 38, so we are viewing XOM as the primary vehicle through which dividend investors should play for the eventual rebound in energy prices.