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Marathon Petroleum’s Dividend Yield Has Risen in Q4


Dec. 12 2018, Updated 3:44 p.m. ET

Marathon Petroleum’s dividend per share

Marathon Petroleum’s (MPC) dividend yield has risen due to a fall in its stock price. Before we review the stock’s yield trend, let’s look at the company’s dividend payment in the current quarter.

Marathon Petroleum’s dividend payments have risen in the past few years. In the current quarter, Marathon Petroleum paid a dividend of $0.46 per share on December 10. The dividend was announced on October 31, 2018. Marathon Petroleum’s fourth-quarter dividend payment represents 15% growth over Q4 2017.

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Marathon Petroleum’s dividend yield

Marathon Petroleum’s current dividend yield stands at 3.0%, which has risen from 2.6% in Q4 2017. The rise in the yield is due to an 8% YoY decline in Marathon Petroleum’s stock price in this period. The sharp plunge in the stock of around 26% in the current quarter has more than offset the gains that the stock achieved earlier in the year.

Marathon Petroleum has been paying reliable and growing dividends in the past several years. Notably, since 2011, the company’s dividends have risen at a 24% CAGR (compounded annual growth rate).

Going forward, Marathon Petroleum plans to prioritize shareholder returns along with focusing on growth. The company just acquired Andeavor, which has resulted in the creation of the largest downstream company in the US.

In 2019, the company expects its annual dividends to grow by more than 10%. Plus, Marathon Petroleum plans to buy back more than $2.5 billion worth of shares in 2019. In the fourth quarter, the company targets $700 million of share repurchases.

Peers’ dividend yield

Peers’ dividend yields have also risen. Valero Energy (VLO) currently has the highest dividend yield of 4.4%. Phillips 66 (PSX) and PBF Energy’s (PBF) yields stand at 3.6% and 3.7%, respectively, higher than Marathon Petroleum’s yield. However, HollyFrontier (HFC) and Delek US Holdings’ (DK) dividend yields stand at 2.4% and 2.8%, respectively, lower than MPC.

Move onto the next part to know more about Marathon Petroleum’s stock slump.


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