BP reported total earnings of $2.8B in the second-quarter, with the two largest segments being oil production & operations and gas & low carbon energy. The dividend is paid every three months and the last ex-dividend date was Aug 9, 2024. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer.
- U.S. companies are more expensive than European energy companies due to growing investments in shale oil and gas, such as in the Permian.
- Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.
- BP has a dividend yield higher than 75% of all dividend-paying stocks 5.6, making it a leading dividend payer.
- BP’s dividend payout ratio of 59.56% is at a healthy, sustainable level, below 75% of its earnings.
BP: 15% Earnings Yield, 5% Dividend, Upside Potential
With an 8-9X P/E ratio, based off of FY 2025 earnings, shares of BP could have a fair value between $39.50 and $44.45 per-share. 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. BP’s dividend yield of 5.41% is lower than the average Energy company that issues a dividend. BP generated 7% year-over-year growth in its most important metric in the second-quarter, underlying replacement cost profit, which is BP’s proxy for core earnings.
BP vs Oil & Gas Integrated Stocks
OPEC+ members extended their supply cuts earlier this year and thereby provided significant pricing support for oil and gas companies… Which was a reason for me to recommend BP to income and growth investors alike. The prospect for higher price realizations as well as new upstream projects could further drive a new round of attractive capital returns for shareholders, in my opinion. Since OPEC+ members are likely to enact additional production curbs in order to support petroleum prices, I believe that BP is how to become an database administrator an attractive long-term energy investment at its current price point. The biggest risk for BP, as I see, relates to a slow start for its expansion projects in the Gulf of Mexico. Further, I see risks relating to fossil fuel regulation as well as lower petroleum prices, which would also stifle BP’s potential for EBITDA and cash flow growth.
The most recent change in the company’s dividend was an increase of GBX 0.01 on Tuesday, July 30, 2024. The most recent change in the company’s dividend was an increase of $0.0438 on Tuesday, July 30, 2024. BP’s most recent dividend payment of GBX 0.07 per share was made to shareholders on Friday, June 28, 2024. BP’s next dividend payment of GBX 0.08 per share will be made to shareholders on Friday, September 20, 2024. BP’s most recent quarterly dividend payment of $0.4362 per share was made to shareholders on Friday, June 28, 2024.
BP delivers strong Q2’24 results, driven by higher average prices
Additionally, BP raised its dividend by 10% to 8 cents in the second-quarter. Since BP pays out only about 30% of its TTM earnings (compared to a sector median of 43%), I believe investors can expect further dividend euro hungarian forint exchange rate history increases going forward. BP’s dividend yield of 5.78% is lower than the average Oils/Energy company that issues a dividend. BP has a dividend yield higher than 75% of all dividend-paying stocks 5.6, making it a leading dividend payer. BP’s dividend payout ratio of 59.56% is at a healthy, sustainable level, below 75% of its earnings.
What would change my mind about BP is if the company were to see slowing production and earnings growth, or scaled back its stock buybacks. U.S. companies are more expensive than European energy companies due to growing investments in shale oil and gas, such as in the Permian. Strong production growth in the Permian Basin, as an example, was one reason why I recommended shares of Exxon Mobil, in addition to the company’s extraordinary free cash flow strength. I also recommended Chevron lately — Don’t Miss This Buying Opportunity — as the oil and gas company outperformed its U.S. rivals in terms of dividend growth. In the largest segment, oil and gas, BP achieved an average price of $73.01 per barrel in Q2’24, showing an increase of 6% year-over-year.
Oil and gas production increased a solid 5% year-over-year to 2,379 MBOED and the company’s expansion projects in the Gulf of Mexico add further impulses for production growth in the future. Besides a low valuation, the second big advantage is that BP has the potential to return more cash to shareholders going forward. BP guided for $3.5B in stock buybacks in the second half of the year, which would follow a combined $3.5B in buybacks already completed in Q1 and Q2.
BP dividend payout ratio
BP’s next quarterly dividend payment of top 10 robinhood penny stocks to watch in march 2021 $0.48 per share will be made to shareholders on Friday, September 20, 2024.