XOM Hold on or Let Go?

[tqf258]

I have ~1700 shares of XOM stock in an old 401K from when I worked there.
Should I move that money somewhere else of hold the XOM stock for the long term?

[TexasHusker]

The dividend yield on XOM is poor, and the P/E is quite high. I'd dump it personally and move on.

[bennkar]

The dividend yield on XOM is poor, and the P/E is quite high. I'd dump it personally and move on.

II'm surprised by this advice. The P/E is 23.6 today which is sorta high, but then so is most of the market. And the dividend is over 4% which isn't bad. Of course this is easy to say as I only have 1% of XOM that the OP has. I think its fair to say you take some out and diversify, but I wouldn't call it a bad stock overall.

[msomnipotent]

What percentage of your portfolio do the 1700 shares represent, what did you pay for them, and what is your timeline?

[TexasHusker]

II'm surprised by this advice. The P/E is 23.6 today which is sorta high, but then so is most of the market. And the dividend is over 4% which isn't bad. Of course this is easy to say as I only have 1% of XOM that the OP has. I think its fair to say you take some out and diversify, but I wouldn't call it a bad stock overall.

I stand corrected. I was looking at the dividend for one quarter. 4 percent is actually quite strong. I'd hang on to that one.

[tqf258]

They are in an old 401K from when I worked for XOM. Some were company match and the rest were bought over about a 6-7 year period while I worked there.
I would say its about 25% of my current retirement savings.

[disneysteve]

I would say its about 25% of my current retirement savings.

Do you have other investments as well?

You definitely shouldn't have 25% of your portfolio in a single stock. The usual advice is not to exceed more than 5-10% in a single company. You should be better diversified.

[tqf258]

The rest of my money is diversified. To get the max match at XOM you had to put into their stock.

[disneysteve]

The rest of my money is diversified. To get the max match at XOM you had to put into their stock.

Yeah, a lot of places used to do that. Then the law changed so that they couldn't force employees to get company stock after Enron imploded and people lost their whole retirement account.

So what % of your total portfolio does this stock represent?

[tqf258]

Roughly 29% of all retirement funds.
That 401K also has money in Extended Market Units and International Equity funds.

[disneysteve]

Roughly 29% of all retirement funds.

No, I meant what % of everything, counting retirement and non-retirement monies?

Like I said, having more than 5-10% in any one stock is much higher risk than generally recommended.

[tqf258]

15%ish

[disneysteve]

15%ish

That’s better but still a lot. It just puts you at more risk when you have a big stake in one stock.

Of course, as you add to your other investments, the % in this stock will decrease.