In this series, we have ranked integrated energy stocks based on their estimated earnings growth in 1Q18. BP (BP) occupies the top spot followed by Royal Dutch Shell (RDS.A), Chevron (CVX), and ExxonMobil (XOM). In this part, we’ll discuss these stocks’ dividend yields before their 1Q18 earnings and dividend announcements.
BP and Shell, which are first and second in terms of estimated earnings growth, have dividend yields above the peer average of 4.6%. Chevron and ExxonMobil have dividend yields below the peer average.
BP, which is first with 46% estimated earnings growth YoY, also occupies the top spot in terms of dividend yields. Currently, BP’s dividend yield stands at 5.5%. The dividend yield has declined from 6.4% in 1Q17. The yield fell in the past year due to the rise in BP’s stock price.
The yield could change in the next few weeks when BP announces its next dividend. BP’s dividend payment stood at $0.60 per share in 1Q18.
Shell’s 33% estimated earnings growth ranks it second among the four players we’re analyzing in this series. The company also stands second in terms of dividend yields. Currently, Shell’s dividend yield stands at 5.3%, which declined from 6.8% in 1Q17. The yield declined due to the surge in its stock during the stated period. When Shell announces its next dividend, it could alter the yield. Shell’s dividend payment stood at $0.94 per share in 1Q18.
ExxonMobil and Chevron
ExxonMobil and Chevron are third and fourth, respectively, in terms of current dividend yields. ExxonMobil’s current dividend yield stands at 3.9%, while Chevron’s current dividend yield stands at 3.6%. The dividend yield could change when the companies announce their next dividend payments. In 1Q18, ExxonMobil’s dividend payment was $0.77 per share, while Chevron’s dividend payment was $1.12 per share.
Next, we’ll discuss BP, Shell, ExxonMobil, and Chevron’s valuations before their 1Q18 earnings.