Sunday, August 31, 2008

Exxon owners' "Windfall Loss"

Isn't it amazing that the Usual Suspects who love to demagogue the "Oil Company's Obscene Windfall Profits" never seem to get around to discuss this aspect of those "profits."

Noteworthy:

"If you had bought one share of Exxon at the beginning of the year, you would have paid $94, and you would have received a $0.35 dividend in February, and $0.40 dividends in May and August, for a total of $1.15 in dividends this year. Exxon is now selling for $80 (see chart above), so your annual return this year from holding Exxon stock would be -13.7%, and a $1,000 investment in Exxon on January 1 would now be worth only $863. Seems like more of a windfall loss than a windfall gain for Exxon shareholders."




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