The Successful Investor, in the September, 2019, issue, refreshes its buy of Imperial Oil Ltd., recently $33. The Investor said buy 35 times from February, 1997, to June, 2019, at prices ranging from $29 to $87 (the stock split 3 for 1 on May 12, 1998, and again on May 17, 2006). Assuming a $1,000 investment for each of the 35 buys, the $35,000 position is now worth $47,982. Imperial is one of Canada's largest oil companies. ExxonMobil, its parent company, owns 69.6 per cent of its shares. In the quarter ended June 30, 2019, Imperial produced 400,000 barrels of oil equivalent a day, up from 336,000 barrels a day in the same period last year. Amid uncertainty over future Canadian pipeline capacity, as well as the Alberta government's mandatory oil production cuts, Imperial recently slowed the development of its 75,000-barrel-a-day Aspen oil sands project. It will now aim to finish the project in 2023 instead of 2022. The Investor is unfazed by the delay, noting that Imperial has high-quality operations and a strong balance sheet to keep investing in them. Imperial now trades at a reasonable 13.7 times its likely 2019 earnings of $2.41 a share, and its dividend yield is 2.7 per cent. Buy.
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