What’s BP’s Dividend Yield?



Series overview

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.

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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%.


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