Exxon Has A Compelling Dividend Yield. This Strategy Can Boost Its Attractiveness.

Core Insights - The stock market has reached record highs following a cooler Consumer Price Index (CPI) report, which may influence investor sentiment positively [1] Exxon Mobil Overview - Exxon Mobil (XOM) is viewed as a lower-risk energy investment due to its global operations and offers a dividend yield of 3.45% as of Thursday [1] - The company is one of the largest integrated oil and gas firms, with diversified revenue streams across upstream exploration, downstream refining, and chemical operations [4] Investment Strategy - Income investors may consider using a covered call strategy to enhance the dividend yield while slightly reducing risk on a long stock position [2] - A covered call trade on Exxon Mobil could involve buying 100 shares for approximately $11,600 and selling a Dec. 19, 120-strike call option for a premium of $225, resulting in a potential total profit of $625 if the stock closes above $120 at expiration [3] Performance Metrics - Exxon Mobil has shown an 8% gain year-to-date, making it attractive for conservative investors seeking income and modest capital appreciation [6] - The stock has a Composite Rating of 43, an Earnings Per Share Rating of 52, and a Relative Strength Rating of 46 according to Investor's Business Daily [5] - The implied volatility of Exxon Mobil is currently at 24.57%, with a 12-month low of 17.92% and a high of 49.43% [5]