uploads///Dividends

Has BP’s Dividend Yield Risen?

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May. 24 2019, Published 11:32 a.m. ET

BP’s dividend per share

In this part, we’ll discuss BP’s (BP) dividend yield trend. First, we’ll discuss BPs’ dividend payment in the second quarter.

BP will pay higher dividends in the second quarter. In the second quarter, BP will pay a dividend of $0.615 per share, which represents a 2.5% year-over-year rise.

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BP’s dividend yield

BP’s current dividend yield has risen from 5.6% in the second quarter of 2018 to the current level of 5.8%. The growth in the yield is due to the fall in BP stock and an increase in its dividends in the stated period. From the second quarter of 2018 to the second quarter, BP stock has fallen 9.5%. Most of the fall came in the fourth quarter of 2018 when oil prices fell.

BP plans to maintain an optimum balance between growth and shareholders’ returns. The company has provided consistent dividends throughout the oil cycle. With an improvement in BP’s earnings and cash flows, the company has shared higher returns with shareholders in the form of buybacks. In the first quarter, BP’s cash outflows in the form of dividends were $1.4 billion. The company bought back $50 million worth of shares in the first quarter.

Peers’ dividend yield

Royal Dutch Shell (RDS.A) has a higher dividend yield than BP at 5.9%. However, ExxonMobil (XOM), Chevron (CVX), Total (TOT), and Suncor Energy (SU) have relatively lower yields at 4.6%, 3.9%, 5.4%, and 3.9%, respectively.

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