How to Buy Exxon Mobil and Chevron at a 13% Discount

Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX), two of the largest energy companies, are also two of the most venerated.exxonmobil
The two energy giants were once siblings under the Standard Oil trust. Exxon Mobil operated as Standard Oil Co. of New Jersey; Chevron, headquartered on the other side of the country, operated as Standard Oil (California). The two parted ways financially and managerially in 1911 when the Standard Oil trust was dissolved by judicial diktat.
No problem, Exxon Mobil and Chevron transferred seamlessly and profitably into independence. Both would evolve to become two of the most prodigious dividend payers in the annals of business history. Exxon Mobil and Chevron have paid a high-yield annual dividend faithfully for the past 100 years.
The high-yield-dividend distinction holds to this day. As I write, Exxon Mobil’s dividend yields 3.7%; Chevron’s yields 4.1%. Their respective dividend yields are higher than normal because their respective share prices have been held in check by oil-price plunge that swept the market in 2015.
Oil has held at $50/barrel for the past year, but that could soon enough give way to $60/barrel or higher. This week, OPEC and its allies, announced that it will continue to cut production another nine months after Iraq agreed to back the extension.
Higher oil prices would mean a higher share price for Exxon Mobil and Chevron. It would also mean higher future dividends. Based on this simple line of reasoning alone, Exxon Mobil and Chevron are enticing buys.
But the two energy giants are better buys than you realize.
You can buy Exxon Mobil and Chevron today at a 13% discount, if you know how to buy them. Knowledgeable investors know how to buy Exxon Mobil or Chevron at the going discount. In fact, knowledgeable investors know that they never need to pay retail for any stock.
How do they do it?
They eschew individual stocks, and they eschew the mutual funds and exchange-traded funds that hold them. Instead, they buy stocks through a unique investment fund — one that allows them to buy the most recognized companies at a discount to the market.
Knowledgeable investors know about these unique funds, but you likely don’t, which is understandable. Only 600 of them exist, and most are small cap. In total, they hold $220 billion worth of assets. That number sounds big, but consider that over 9,500 mutual funds hold over $16 trillion in assets and that over 1,500 exchange-traded funds (ETFs) hold over $2 trillion in assets.
It’s perplexing when you think about it: Mutual funds and ETFs flourish while these unique funds operate in obscurity. Investors flock to mutual funds and ETFs, yet neither allow them to buy at a discount — only this unique category of funds does.
Buying at a discount is an obvious advantage, but these unique funds offer an additional advantage — high-yield income.
In fact, the particular fund that allows you to buy Exxon Mobil and Chevron at a 13% discount also offers a higher yield than either company. The fund’s yield is closer to 6% than 4%. Through its 40-year history, the fund has always offered a yield higher than the companies its investment portfolio comprises.
Additional price appreciation offers a tertiary advantage. By holding the fund instead of the individual stock, you can potentially capture superior price gains. You can buy the fund at a significant discount during a down cycle and you can sell when the discount has narrowed or has turned to a premium during an up cycle. You can capture not only normal share-price appreciation, but you can capture the additional price appreciation that occurs with the narrowing discount.
In short, you can buy Exxon Mobil and Chevron (and many other companies) at a discount today; you can receive a higher income yield than either company offers.  You can then sell the fund to capture greater share-price appreciation than Exxon Mobil or Chevron would offer as individual investments.
If you want to learn how to buy stocks like Exxon Mobil, bonds, and other investments at discounts of up to 20% of market value and earn high-yield income of up to 15%, while doing so, you’ll want to join me for an exclusive live webinar on Wednesday, June 7. You’ll not only learn how to buy stocks at a discount, you’ll learn how to earn a high yield on your discounted stocks.
 
 
 
 
 

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