Exploring the Dividend History, Yield, and Growth of ConocoPhillips (COP, Financial)
ConocoPhillips (COP) recently announced a dividend of $0.6 per share, payable on 2023-10-16, with the ex-dividend date set for 2023-09-27. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into ConocoPhillips's dividend performance and assess its sustainability.
What Does ConocoPhillips Do?
ConocoPhillips is a U.S.-based independent exploration and production firm. In 2022, it produced 1.2 million barrels per day of oil and natural gas liquids and 3.1 billion cubic feet per day of natural gas, primarily from Alaska and the Lower 48 in the United States and Norway in Europe and several countries in Asia-Pacific and the Middle East. Proven reserves at year-end 2022 were 6.6 billion barrels of oil equivalent.
A Glimpse at ConocoPhillips's Dividend History
ConocoPhillips has maintained a consistent dividend payment record since 1986. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down ConocoPhillips's Dividend Yield and Growth
As of today, ConocoPhillips currently has a 12-month trailing dividend yield of 1.86% and a 12-month forward dividend yield of 2.00%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, ConocoPhillips's annual dividend growth rate was 39.10%. Extended to a five-year horizon, this rate decreased to 25.30% per year. And over the past decade, ConocoPhillips's annual dividends per share growth rate stands at -2.50%.
Based on ConocoPhillips's dividend yield and five-year growth rate, the 5-year yield on cost of ConocoPhillips stock as of today is approximately 5.74%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, ConocoPhillips's dividend payout ratio is 0.37.
ConocoPhillips's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks ConocoPhillips's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 6 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. ConocoPhillips's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and ConocoPhillips's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. ConocoPhillips's revenue has increased by approximately 28.40% per year on average, a rate that outperforms approximately 82.13% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, ConocoPhillips's earnings increased by approximately 31.60% per year on average, a rate that outperforms approximately 60.92% of global competitors.
Next Steps
Given ConocoPhillips's consistent dividend payments, impressive growth rate, sustainable payout ratio, and strong profitability and growth metrics, it presents an attractive proposition for dividend-focused investors. However, like any investment, it is crucial to conduct thorough research and consider the company's overall financial health before making a decision. With a strong track record and promising prospects, ConocoPhillips offers a compelling case for consideration.
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