ConocoPhillips (COP) Rewards Investors with Dividend Hike

Zacks

Upstream energy firm ConocoPhillips COP declared that its board of directors has approved an increase in its quarterly dividend.

The new dividend of 26.5 cents per share is 6% higher than the previous dividend of 25 cents. The increased dividend will be paid on Mar 1, to shareholders on record as of Feb 14. Based on closing price of $48.76 per share on Jan 31, 2017, the stock has a dividend yield of 2.2%.

Management said that the dividend hike in sync with the company’s plan to return 20–30% operating cash to stockholders. This also indicates ConocoPhillips’ financial strength. In fact, we note that the company’s net cash & equivalent figure is better than three major energy players like Occidental Petroleum Corporation OXY, Hess Corporation HES and Marathon Oil Corporation MRO.

Houston, TX-based ConocoPhillips is a major global exploration and production (E&P) company with operations and activities in 21 countries, including the U.S., Canada, the U.K./Norway, China, Australia, offshore Timor-Leste, Indonesia, Libya, Nigeria, Algeria, Russia and Qatar. The company is depicted as the largest E&P player in terms of production and proved reserves.

ConocoPhillips’ price chart shows significant strength. In the last three months, the company’s shares gained 12% compared with 5.7% increase for the Zacks categorized Oil-Energy industry.

Investors should note that ConocoPhillips is expected to report fourth-quarter 2016 results before the opening bell on Feb 2. The Zacks Consensus Estimate for quarterly earnings stands at a loss of 38 cents.

Presently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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