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Will Marathon Petroleum Increase Its Next Dividend Payment?

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Mar. 13 2018, Updated 6:32 a.m. ET

Marathon Petroleum’s dividend per share

In the previous article, we examined Marathon Petroleum’s (MPC) stock price estimate based on its current implied volatility. Now, let’s consider analysts’ opinions on MPC’s next dividend payment.

Marathon Petroleum’s (MPC) dividend payments have been growing steadily over the past few years. In 1Q18, MPC announced a 15% rise in its dividend payment compared to 4Q17 to $0.46 per share. This dividend was announced on January 29, 2018, and it will be paid on March 12, 2018. Considering the long-term trend, MPC’s dividend payment in 1Q18 represents a 44% rise compared to 1Q16.

Wall Street analysts anticipate Marathon Petroleum’s dividend payment to stay stable in the next quarter at $0.46 per share. This expectation could be the result of MPC stepping up its dividend payment in 1Q18.

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Marathon Petroleum’s dividend yield

Marathon Petroleum’s dividend yield currently stands at 2.7%, a fall compared to 3.0% in 1Q16. This fall is likely the result of a steeper rise in Marathon Petroleum’s stock price than the growth in its dividend payment in the stated period.

Peers’ dividend yields

Delek US Holdings’ (DK) and HollyFrontier’s (HFC) dividend yields have fallen from 3.5% and 3.8%, respectively, in 1Q16, to their current levels of 2.2% and 2.9%, respectively.

Comparatively, Valero Energy’s (VLO) dividend yield remained unchanged at 3.0% in the stated period.

However, Andeavor’s (ANDV) dividend yield has risen from 2.3% in 1Q16 to its current level of 2.4%. Similarly, Phillips 66’s (PSX) dividend yield has risen from 2.8% to 3.0% in the same period. Also, PBF Energy’s (PBF) dividend yield has risen from 3.5% in 1Q16 to its current level of 3.8%.

In the next article, we’ll examine institutional ownership in MPC.

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