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How Has BP’s Dividend Yield Trended?

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BP’s dividend per share

In this article, we’ll look at BP’s (BP) dividend yield trend. Before that, though, let’s look at its dividend payment in the current quarter.

BP’s dividend payment has risen in the current year. In the first quarter, BP’s dividend payment was $0.615 per share (or American depositary receipt), a 2.5% YoY (year-over-year) rise.

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BP’s dividend yield

BP’s current dividend yield has fallen from 6.2% in the first quarter of 2018 to its current level of 5.8%. The decline in its yield is the result of the rise in its stock price partly offset by the increase in its dividend in the stated period. From the first quarter of 2018 to date in the first quarter of 2019, BP stock has risen 5%. The majority of this rise has come in the current quarter, in which the company has benefited from stronger oil prices.

BP plans to maintain an optimal balance between growth and shareholder returns. The company has provided consistent dividends throughout the oil cycle. Plus, with improvements in its earnings and cash flows, the company has shared higher returns with its shareholders in the form of share buybacks. In 2018, BP’s cash outflows in the form of dividends stood at $6.7 billion. The company also bought back $0.4 billion worth of shares in the year.

Peers’ dividend yields

Royal Dutch Shell (RDS.A) and Total (TOT) have higher dividend yields than BP at 6.1% and 6.5%, respectively. In comparison, ExxonMobil (XOM), Chevron (CVX), and Suncor Energy (SU) have relatively low yields of 4.1%, 3.8%, and 3.8%, respectively.

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