The Fall of Exxon MobilSubscribe
The great and mighty Exxon Mobil ($XOM) has been delisted from the DOW Jones Industrials Index (which has been there since 1928), replaced by Salesforce.com. As recently as 2013, Exxon was the the most valuable company on the planet. Its market value topped out at $446 billion in mid-2014, the last time crude prices traded above $100 a barrel. But Exxon is now a shell of its former self. Exxon is still clinging to their dividend (as of today it's a whopping 9.18%!), chasing debt to pay down their dividend rather than cut like rival Shell ($RDS) who hasn't seen a dividend cut since WW2. The coronavirus is taking it's toll on Wall Street and Corporate America, but I never though I'd see Exxon take a beating like this. Their management hasn't been stellar and could use a shakeup, but Exxon are loyalists and extremely rigid. Oil isn't going anywhere, and the rise of electric vehicles will be powered by natural gas (which Exxon is a big player in), not to mention a massive downstream business to buoy them during low oil prices. Chevron is still on the DOW.
What are your thoughts? Is this is sign of things to come? Is the post-COVID world going to look radically different than pre-COVID (negative rates?).