None of the oil majors can cover their capital spending and dividends at today's oil price, even after slashing their investment plans. Oil needs to be closer to $50 to $60 per barrel for these companies to breakeven on their obligations, according to data from Bloomberg. Source: Bloomberg, U.S. Energy Information Administration, Simply Safe Dividends The price of oil has started to rebound off its April lows with lockdowns being lifted and supply falling. But at today's price near $39 per barrel, the oil majors will continue burning through cash.

Franklin (BEN) reported earnings on April 30, providing a first look into the impacts of March's market turmoil on the active fund manager. Naturally, Franklin's investments declined in concert with markets. Assets under management (AUM) fell 17% to $580 billion, leading to a 7% decline in management fee revenue compared to the previous quarter. More notably, a flurry of client redemptions in fiscal Q2 led to a sharp increase of $25.4 billion in net outflows from Franklin's equity and fixed income funds.

None of the oil majors can cover their capital spending and dividends at today's oil price, even after slashing their investment plans. Oil needs to be closer to $50 to $60 per barrel for these companies to breakeven on their obligations, according to data from Bloomberg. Source: Bloomberg, U.S. Energy Information Administration, Simply Safe Dividends The price of oil has started to rebound off its April lows with lockdowns being lifted and supply falling. But at today's level near $35 per barrel, the oil majors will continue burning through cash. With an estimated breakeven price of $60 per barrel, Exxon is no exception.

Shares of AbbVie (ABBV) have had a dividend yield above 5% for most of the past year, reflecting uncertainty about the biopharma company's growth profile. AbbVie's rheumatoid arthritis drug Humira, which in 2019 accounted for over 55% of sales and an even greater share of profits, loses exclusivity in the U.S. in 2023. That long-term hole will need to be filled by other revenue streams to continue supporting the dividend, driving AbbVie's decision last year to purchase drugmaker Allergan in an $80-plus billion deal. After completing its transformative acquisition on May 8, AbbVie can begin working to prove that its long-term outlook remains favorable even as Humira revenue starts declining in a few years.