How Integrated Energy Dividends Look after Their 3Q17 Earnings
Integrated energy stocks’ dividends
ExxonMobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS.A), and BP (BP) have paid dividends regularly in the past few years. In 4Q17, XOM’s dividend payment stands at $0.77 per share, which was announced on October 25 and will be paid on December 11, 2017. This shows 2.7% growth over the dividend paid in 4Q16.
Similarly, CVX dividend payment stood at $1.08 per share in 4Q17, staying constant compared to 4Q16. Like XOM, CVX’s dividend was also declared on October 25, 2017, and will be paid on December 11, 2017.
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Shell’s and BP’s dividend payments per share (or ADS) have remained steady in 4Q17 over 4Q16. Shell’s dividend payment for 4Q17 stands at $0.94 per share. BP’s dividend payment stands at $0.60 per share for 4Q17. Wall Street analysts forecast integrated energy stocks’ dividend payments to remain flat in 1Q18 over 4Q17.
Business environment in 4Q17
In 4Q17, integrated energy companies are witnessing a better energy environment. Oil prices, which impact the upstream sector, have risen year-over-year (or YoY) in 4Q17. Refining margins, which affect the downstream sector, have risen YoY in 4Q17.
WTI prices on an average have risen 5.5% YoY to $52.00 per barrel in 4Q17 quarter-to-date. The US Gulf Coast WTI 3-2-1, the benchmark crack, has risen 50.0% YoY to $19.40 per barrel quarter-to-date in 4Q17. The sudden rise in the crack is due to the impact of Hurricane Harvey.
Integrated energy stocks’ dividend yields
BP and Shell have higher dividend yields than XOM and CVX. However, BP’s dividend yield has fallen from 6.2% in 4Q16 to the current level of 5.9%. The fall in its yield is due to the rise in BP’s stock price during this stated period.
During the same period, Chevron’s (CVX) dividend yield has fallen from 4.1% in 4Q16 to its current level of 3.8%. Similarly, Royal Dutch Shell’s (RDS.A) dividend yield has fallen from 7.5% in 4Q16 to the current level of 5.9%. However, ExxonMobil’s (XOM) dividend yield has stayed stable at the current level of 3.7%.
Comparatively, the SPDR S&P 500 ETF’s (SPY) dividend yield has fallen from 2.5% in 4Q16 to the current level of 1.9%.