Gulf Coast liquefied natural gas (LNG) plant, also weighed on profits. Its underlying replacement cost profit, its definition of net earnings, reached $8.45 billion in the second quarter, the highest since 2008 and far exceeding analysts’ expectations of $6.8 billion. BP shares were up 4.3% by 1315 GMT, hitting their highest levels since June and strongly outperforming the European energy index (.SXEP) which was up 0.7%. BP shares have gained 23% this year but are still some 10% below pre-pandemic levels.
But National Grid’s my favourite of those in the 5%-6% range. But I’m nervous about the potential for bad debts to wipe out any increase in interest income. All three have increased their provisions against their loan books over the past year.
- The operator of utility, transportation and energy assets is currently shelling out a dividend of $0.38 per share, with a dividend yield of 5.12%.
- Any future dividend growth will depend on both earnings growth and the company’s payout ratio; a payout ratio is the proportion of a firm’s annual earnings per share that it pays out as a dividend.
- Recent stocks from this report have soared up to +178.7% in 3 months – this month’s picks could be even better.
- Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers.
- Committed to driving the transition to a low-carbon future, BP aims to provide cleaner energy options while meeting the world’s growing energy needs.
- A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.17% per year. These returns cover a period from January 1, 1988 through September 4, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return.
BP boosts dividend even as profit slumps 70% to $2.6 billion
For instance, it’s a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It’s more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, BIP is a compelling investment opportunity.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company’s earnings paid out to shareholders; it’s often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. So today, instead of a screen designed to highlight stocks with high current dividend yields, we look at the compounding of dividend payouts over time. A long-term investor building a nest egg with a plan to eventually draw income from it may be well served on a total-return basis if the payouts increase significantly over time.
About BP plc
BP CEO Bernard Looney has resigned effective immediately after failing to fully disclose previous personal relationships with company colleagues. CFO Murray Auchincloss will step in as CEO on an interim basis. The Freeport LNG plant supplies BP with 4 million tonnes per year of LNG, out of a total portfolio of 18 million tonnes. “The company is running well and it continues to strengthen. We have real strategic momentum,” Chief Executive Officer Bernard Looney told Reuters. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
BP’s dividend yield is higher than the average dividend yield of its peers. BP increased its dividend by 10% to 6.006 cents per share, more than its previous guidance of a 4% annual increase. It halved its dividend to 5.25 cents in July 2020 for the first time in a decade in the wake of the pandemic. BP’s shares were up around 1.5% by 0935 GMT versus a broader index of European oil and gas companies (.SXEP) up 0.44%. It’s investing heavily in renewables and reported an 89% increase in profit before tax for the year ended 31 March 2023, compared to 2022. The chip maker’s stock has almost tripled in value this year but has moved sideways in recent months.
I’d regret not buying this once-in-a-generation level of high-yield passive income!
Don’t be fooled by the apparent improvement in margins and ROE in the past two quarters, which was an artifact produced by asset fire-sale and profit pad-up amidst sharply declining revenue (see here; Fig. 5). “Terminal lucidity” may be mistaken for a turnaround of a perennially sickly business. We are increasing our resilient dividend by 4% per ordinary share and in addition, we are commencing a buyback of $1.4 billion from first half surplus cash flow. With a potentially long runway ahead, energy stocks could still represent positive value…
Last year’s 18.62p per share reward is tipped to rise to 22.59p in 2023, before increasing to 24.29p next year and to 25.61p the year after. Yet unlike industrial metals, prices of oil are shooting higher as concerns over supply disruptions overshadow fears around energy consumption. Brent crude prices recently spiked to 10-month highs above $95 per barrel, spurred by production constraints in Saudi Arabia and further drawdowns in US inventories.
BP (BP)
The dividend history of Exxon Mobil, compiled by Laurentian Research for The Natural Resources Hub based on the company-released sources. The dividend history of BP, compiled by Laurentian Research for The Natural Resources Hub based on the company-released sources. See Best Monthly Dividend Stocks Model Portfolio for our top monthly income ideas. We’d like to share more about how we work and what drives our day-to-day business. Compare
BP’s historical performance
against its industry peers and the overall market.
New Strong Buy Stocks for October 3rd
Energy giant ExxonMobil (XOM -0.41%) hardly needs an introduction. With a market cap of $460 billion, it’s easily one of the largest oil and natural gas producers on the planet. how to buy polkacity Add in a dividend yield of 3.1%, compared with the S&P 500’s miserly 1.5% average, and there’s a good reason for income-focused investors to be examining this goliath.
Upgrade to MarketBeat All Access to add more stocks to your watchlist. Over the past three years, the company’s dividend has not grown.
In terms of dividend growth, the company’s current annualized dividend of $1.53 is up 6.3% from last year. In the past five-year period, Brookfield Infrastructure Partners has increased its dividend 4 times on a year-over-year basis for an average annual increase of 3.28%. Any future dividend growth will depend on both earnings growth and the company’s payout ratio; a payout ratio is the proportion of a firm’s annual earnings per share that it pays out as a dividend. Brookfield Infrastructure’s current payout ratio is 54%, meaning it paid out 54% of its trailing 12-month EPS as dividend.
Last month, BP won the rights to develop two large offshore wind projects in Germany, agreeing to pay 678 million euros upfront, equivalent to 10% of the bid amount. Sign up for BP plc and we’ll email you the dividend information when they declare. Under his leadership, BP invested over $140 billion in the U.S., marking the country’s largest global economic footprint. Lawler, who has been at best indicator for forex trading the helm of BP America since July 2020, is leaving to explore new career opportunities. This development comes amid a period of leadership instability for the company, according to a note by the Financial Times, citing an internal memo. The three banks on the list – Lloyds, HSBC, and Barclays – are benefitting from the higher interest rate environment that we are currently experiencing.
Enter your email address below to receive our daily newsletter that contains dividend stock ideas, ex-dividend stocks, and the latest dividend investing news. Enter your email address below to receive the DividendStocks.com newsletter, a daily email that contains dividend stock ideas, ex-dividend stocks, and the latest dividend investing news. As heiken ashi strategy this chart shows, when oil prices plunged in 2020, ExxonMobil’s leverage rose. That was common within the company’s peer set, but ExxonMobil had more room than most of its competitors did to take on debt. That debt was used to fund the business and support the dividend. When some of its peers resorted to dividend cuts, ExxonMobil didn’t have to.