Exxon Share Buyback Strategy Benefits Shareholders

Exxon's share buyback strategy has been a game-changer for shareholders. The company has been repurchasing its own shares for years, and it's had a significant impact on the stock price.

By buying back shares, Exxon is essentially reducing the number of shares outstanding, which can lead to a higher stock price. This is because the same amount of profit is now being divided among fewer shares.

Shareholders have been benefiting from Exxon's share buyback strategy, with the company returning billions of dollars to its investors. In 2020, Exxon repurchased $5 billion worth of its own shares.

This strategy has helped to boost shareholder returns, making Exxon a more attractive investment option for many.

Exxon's share buyback is a significant move, especially considering the company's record profits. Exxon is on track to spend $30 billion on buybacks in 2022 and 2023, a target it tripled a few months ago.

This is a substantial amount of money, and it's worth noting that Exxon spent $6 billion on buybacks in the first half of the year. Exxon's decision to raise the upper limit of its buyback target to $15 billion for the full year is also noteworthy.

The company's executives seem confident about the future of their business, as Faisal A. Hersi, an energy analyst at Edward Jones, pointed out. Exxon's share buyback is likely to reward shareholders by raising the value of the company's stock.

It's worth comparing Exxon's approach to that of other companies, such as big banks like JPMorgan Chase and Citigroup, which are pausing share buybacks to conserve capital and meet regulatory requirements. Exxon's decision to continue with buybacks despite rising concerns about a potential recession is a notable one.

Exxon is enjoying record profits this year, generating $19.7 billion in earnings in the third quarter. Exxon has a history of paying dividends, with a quarterly dividend of $0.91 per share, a 3% increase over last year.

Exxon has raised the payout for 40 consecutive years, making it a Dividend Aristocrat. This is a significant achievement, demonstrating the company's commitment to sharing its success with investors.

Exxon suspended its buyback program in 2021, but announced a $10 billion program in January. This program was completed in the third quarter, and now Exxon is going to turbocharge that with a $50 billion repurchase plan.

The $50 billion repurchase plan is a significant increase from the $10 billion program, demonstrating Exxon's confidence in its future prospects.