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Is ConocoPhillips’s Dividend Payout Rising?

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ConocoPhillips’s dividend increase announcement

On February 1, 2018, ConocoPhillips (COP) announced a ~7.5% increase in its quarterly dividend for its common stock, from $0.265 per share to $0.285 per share. That dividend will be payable on March 1, 2018, to stockholders of record at the close of business on February 12, 2018. That will be the dividend payment for 1Q18.

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ConocoPhillips’s last dividend payment and dividend yield

COP paid its last dividend on December 1, 2017. It paid a dividend of $0.265 per share on its common stock, the dividend payment for 4Q17. For the trailing 12 months, it paid a total dividend of $1.06 per share on its common stock.

As of February 16, 2018, the company’s dividend yield, which measures the trailing 12-month dividend by its stock price, was 1.9%. On February 16, COP stock closed at $54.65.

ConocoPhillips’s dividend history

Since 4Q15, COP’s dividend payment has decreased from $0.74 per share in 4Q15 to $0.265 per share in 3Q17. As you can see in the above chart, ConocoPhillips’s dividend fell significantly in 1Q16 when COP decided to reduce its dividend payment to deal with lower operating cash flow due to declining crude oil and natural gas prices.

Dividend yields of other upstream players

As of February 16, 2018, COP’s peers Occidental Petroleum (OXY) and Devon Energy (DVN) have dividend yields of 4.6% and 0.7%, respectively. In comparison, the SPDR S&P 500 ETF (SPY) has a dividend yield of 1.8%. On February 16, 2018, OXY, DVN, and SPY closed at $68.16, $34.11, and $273.11, respectively.

Next, let’s look at COP’s short interest.

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