At the moment, you can not own it, but soon major institutional money will be snapping up shares of Aramco. The Saudi oil complex is going public and according to Bloomberg News, the shareholders will hold this company for a long time. The reason is Aramco had net income of $33.8 billion in the first 6 months. The company makes more money than Apple, JP Morgan and Exxon Mobil.

Among the most important facts: the company has almost no debt and enjoys production costs running at a fraction of the industry standard. The downside, the government of Saudi Arabia depends on Aramco to finance social, military spending as well as the lifestyles of the princes. The stock market listing of Aramco was suppose to happen in 2018 but looks like it will happen in 2019.

Aramco generated adjusted cash flow from operations of $52.1 billion in the first half of last year when Brent crude averaged $53 a barrel. Royal Dutch Shell generated cash flow of $21 billion despite pumping a quarter of the oil and gas Aramco produces.

In terms of dividend payments, Aramco paid a cash distribution of $13 billion in the first half of 2017 while Exxon paid $6.4 billion and Shell paid $7.8 billion.

The great news for potential Aramco shareholders is it costs Aramco $4 a barrel to pump oil and gas, the corresponding numbers for Exxon and Shell is about $20.

Linking to dividend paying stocks, Aramco has two of the main attributes an investor is looking for in a company, no debt and very low cost of production with a high sale margin. At the moment the price of oil is about $67 a barrel. This means although Aramco is only selling 5% of the company, the dividends will be safe, secure and owning this stock is a long term success story.

There are more questions than answers, till the next time – to raising questions.