BP’s dividend yield
BP (BP) has consistently given returns to shareholders in the form of dividends. In this part, we’ll evaluate the company’s dividend yields. BP’s yield is calculated as the ratio of its annualized dividends to the price of its stock.
BP’s dividend yield rose from 5.6% in 3Q13 to 7.7% in 3Q16. This is due to a rise in its dividend coupled with a fall in its stock price during this period.
Peers’ dividend yields
During the same period, ExxonMobil’s (XOM) dividend yield rose from 2.7% to 3.4%, and Chevron’s (CVX) dividend yield rose from 3.2% to 4.2%. Royal Dutch Shell’s (RDS.A) dividend yield rose even more sharply—from 5.3% to 7.6%.
For exposure to high-dividend stocks, you can consider the Vanguard High Dividend Yield ETF (VYM). VYM also has ~11% exposure to energy sector stocks.