A top Republican congressman is calling on President Donald Trump’s proposed tax reform package to boost Exxon Mobil stock, saying the company’s shares could benefit from a boost in its dividend.
Rep. Devin Nunes, R-Calif., wrote on Twitter Wednesday that the Trump administration’s tax reform bill would likely benefit Exxon Mobil, the world’s largest publicly traded oil and gas company, which owns about half of its stock.
Nunes’ tweets came hours after Exxon Mobil’s shares rose nearly 4% after Trump signed the bill, bringing their market value to about $19 billion.
Necessary changes to the tax code would give Exxon a “significant tax break” and “increase its dividend yield, making it a great place to put a big profit,” Nunes wrote.
Exxon’s shares have fallen by more than 10% in 2017.
The Trump administration has said it plans to boost the corporate tax rate from 35% to 39.6% and has promised to overhaul the U.S. tax code to help corporations pay more.
Trump has proposed raising the corporate income tax rate to 20% from 15%, to make it easier for companies to bring profits home.