When people talk about investing in oil, there are a LOT of naysayers. Painful oil crashes, the rise of green energy, and recent public discourse are enough to turn anyone off investing in oil. For those who have been investing in Exxon Mobil however, the checks continue to roll in. Boom or bust, if you have held Exxon for a long enough period of time, you have beaten the market. Naturally, then, Exxon Mobil has a DRIP plan that is the single best anybody has seen.
Investing in Exxon Mobil through Computershare
The DRIP that Exxon Mobil maintains through Computershare is the single best that I have seen. The account set up fees are zero. The dividend reinvestment fees are zero. Want to send in an optional payment? Yeah, there are no fees there either. If you want to set up the plan in an IRA to protect yourself from taxes, you can do that too. The only time you have to pay a commission is when you sell. The premium that Exxon places on getting shareholders that are long term in their thinking means that management has decided to pay your set up costs for you. This respect is something that a lot of other companies like Coca-Cola need to emulate. The conditions that are placed on Exxon’s DRIP accounts are that you have to invest at least $50 a month for six months straight, or make a straight up investment of $250. This ensures that Exxon is getting long term holders who are interested in the long term health. The executives of the company want owners rather than traders interested in short term stock price movements.
If you decide to invest in Exxon, you are investing in one of the most powerful corporations on Earth. This company has been minting millionaires since the break up of John Rockefeller’s oil empire. The price of this wealth is the vicissitudes in the price of oil. If you can’t watch the price of the commodity fall 70%, this business isn’t for you. That’s OK, in a world with tens of thousands of publicly traded businesses, your sleep is far more important than saying you own a particular stock.
I have recently enrolled myself in Exxon Mobil’s DRIP, and plan on contributing to this plan for decades to come. However, to state it once again, I do not have a fiduciary duty to you, and this isn’t stock advice. The unthinkable can happen, and Exxon can go bankrupt. That’s life. If you are interested, consult your financial advisor as to the best way for you to join the DRIP.