BP’s dividend per share
In this part, we’ll discuss BP’s (BP) dividend yield trend. First, we’ll discuss BP’s dividend payment in the fourth quarter.
BP’s dividend payment, which was stable for several years, has risen in 2018. In the fourth quarter, BP’s dividend payment is at $0.615 per share, which represents a 2.5% YoY rise.
BP’s dividend yield
BP’s current dividend yield has risen from 5.8% in the fourth quarter of 2017 to the current level of 6.4%. The yield rose due to the fall in BP’s stock price and its increased dividends in the stated period. From the fourth quarter of 2017 to the fourth quarter of 2018, BP stock has fallen 9%. Most of the fall has been in the fourth quarter. BP has faced weaker oil prices.
BP focuses on maintaining an optimum balance between shareholders’ returns and growth. The company has provided consistent dividends throughout the oil cycle. With BP’s improved earnings and cash flows, the company has shared higher returns with shareholders in the form of buybacks. In the first nine months of 2018, BP’s cash outflows in the form of dividends stood at $5.0 billion. The company bought back $0.3 billion worth of shares in the first nine months.
Peers’ dividend yield
Chevron’s (CVX) dividend yield has risen from 3.7% in the fourth quarter of 2017 to the current level of 4.0%. Also, Total (TOT) and ExxonMobil’s (XOM) dividend yields have risen from 5.2% and 3.7%, respectively, in the fourth quarter of 2017 to the current levels of 5.5% and 4.4%, respectively. Royal Dutch Shell’s (RDS.A) dividend yield has risen from 6.3% to 6.5% during the same period.