In this series, we have looked at BP’s (BP) 1Q18 earnings overview and segmental earnings dynamics. In this article, we’ll look at BP’s dividend announcement.
BP’s dividend stays stable
BP’s dividend payments have stayed stable in the past couple of years. Continuing the trend, in the second quarter of 2018, BP announced a dividend payment of $0.6 per share (or per ADS), which stood flat over the previous quarter. The dividend was announced on May 2 and will be paid on June 22. Also, BP bought back shares worth $120 million in the quarter with an aim to offset the impact of dilution over time.
In comparison, in 2Q18, ExxonMobil (XOM) announced a rise in its dividend payment. XOM raised its dividend to $0.82 per share, representing an increase of $0.05 per share over the previous quarter. BP’s current dividend yield stands at 5.4%, which has fallen from 8.3% in 2Q16. The decline in yield is because of an increase in BP stock price in the stated period.
Peers’ dividend yield
Like BP, peers have also witnessed a fall in dividend yields. Chevron’s (CVX) dividend yield fell from 4.2% in 2Q16 to the current level of 3.6%. Also, Royal Dutch Shell’s (RDS.A) dividend yield fell from 7.5% to 5.4%. Total (TOT) and Statoil (STO) saw a fall in their dividend yields from 5.6% and 5.1%, respectively, in 2Q16, to current levels of 4.6% and 3.5%, respectively.
However, ExxonMobil’s (XOM) dividend yield rose from 3.4% in 2Q16 to the current level of 4.2%.