Will Other Integrated Oils Hike Dividends Too? (COP, XOM, CVX, BP)

Energy

Published: February 15, 2008 3:21 pm

Last Updated: March 26, 2020 6:14 pm

ConocoPhillips (NYSE: COP) hiked its dividend Friday, and not just by a penny. Its quarterly dividend was raised from $0.41 per quarter up to $0.47 per quarter. ConocoPhillips hiked its dividend a year or so from $0.36 to $0.41. At current prices around $78.50, the prior annualized dividend of $1.64 would yield of 2.08%. But the new annualized dividend of $1.88 is now running almost 2.4%.

Frankly, for companies involved in perhaps the best business around right now, the oil giants in the sector are paying quite lower dividends than one might imagine.

Exxon Mobil Corp. (NYSE: XOM) has a $0.35 dividend, or $1.40 annualized, and at $85.00 it has an implied yield of just under 1.65%.
Chevron Corp. (NYSE: CVX) has a $0.58 quarterly dividend, or $2.32 annualized, and at $83.00, this represents nearly a 2.8% dividend yield.

The standout is BP plc (NYSE: BP) although it is more thinly traded; it actually has a quite high dividend. CORRECTION: Its dividend was recently bumped and is $0.8115 now rather than $0.65, so the actual yield is roughly 4.9% and even much higher than most oil dividends….CORRECTION FROM Its $0.65 quarterly dividend, or $2.60 annualized, generates just under a 4% dividend yield based on a $65.50 ADR price. Dividend may fluctuate from dollar conversions

When you compare most of these dividends to the Dogs of the Dow, there is still quite a bit of room for dividend improvement. At least that is how investors used to judge stocks once upon a time.

Jon C. Ogg
February 15, 2008

Travel Cards Are Getting Too Good To Ignore (sponsored)

Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.

We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.

It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.

We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.