ExxonMobil High Oil No Dividend Increase

Today ExxonMobil reports a 7% net income increase for Q1 2006 over 2005. EPS was up an impressive 14%. But yesterday's declared dividend remains unchanged. Chairman Rex W. Tillerson remarks that US$7 Billion was returned to shareholders of which only US$2 Billion was by dividend. Also the share repurchase program will be increased by another US$1 Billion. By not increasing the dividend and relying so heavily on share repurchase the company is betting against today's market price in favor of tomorrow's oil/share price. The bias favors capital gains against increasing dividend income. Subtle with many ramifications depending on your investment objectives/requirements.