The most profitable company in the world is an oil company, but it is not headquartered in the US, its office are in Saudi Arabia – the company is called Saudi Aramco.

In an article by Aya Batrawy of the Associated Press, the company went public with 5% of its shares traded on the Saudi stock market. Profits jumped 90% in the 2nd quarter when compared to the same time last year. Similar to all oil companies, the company had a down year in 2020, but higher commodity prices allows for profits to flow. The company reported half year earnings of $87.9 billion.

The company will pay a dividend of $18.8 billion for the 2nd quarter shareholders as its has promised to do since its debut on the stock market. The Saudi government is the main shareholder of Saudi Aramco.

Aramco President and CEO Amin Nasser expects oil demand to continue to grow for the rest of the decade. OPEC expects world oil demand to rise to 3 million barrels a day to average a 100 million barrels a day.

Linking to dividend paying stocks, in the case of Saudi Arabia, it continues to own vast oil reserves which are among the least expensive to produce in the world. Every time the oil price goes up or is stable, the company will make money. It is almost impossible not to make money. As an investor you like those numbers and owning shares can be a very long term hold.

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