ExxonMobil (NYSE: XOM) takes an integrated approach to operating in the volatile oil and gas sector. It owns upstream (oil and gas production), midstream (pipelines), and downstream (refining and chemicals) assets. This diversified strategy helps mute some of the impact of volatility in the energy sector since its downstream businesses benefit from lower energy prices.

Exxon's integrated strategy has enabled it to produce steadier cash flow over the years than its rivals focused on either end of the energy market value chain. It has also enhanced its growth. It's a big reason Exxon has been able to increase its dividend every year for the last four decades. 

The oil giant sees a lot more growth ahead for its downstream business. That could give it more fuel to continue increasing its dividend, making ExxonMobil stock look like an even more compelling long-term investment opportunity.

Continue reading

Source Fool.com