BP is one of the world's largest oil and gas companies, operating in over 70 countries. BP, formerly known as British Petroleum, was founded in 1909 and has since become a major player in the global energy market. For over a century, the company has been paying out dividends to its shareholders, and BP's dividend history is a great way to gain insight into the company's financial health and performance. In this article, we'll take a look at BP's dividend history, how it has changed over the years, and what it might mean for investors.
BP's Dividend History
BP has a long history of paying out dividends to its shareholders, and its dividend policy has remained largely unchanged for many years. The company pays out an annual dividend which is declared by the Board of Directors each year. The dividend is typically paid out in two parts: a regular quarterly dividend and an annual special dividend. The size of the dividend is determined by the company's performance, and it is usually based on a percentage of the company's profits.
In recent years, BP's dividend payout has been relatively consistent, with the company paying out a quarterly dividend of US$0.10 per share. The annual special dividend has varied over the years, and has ranged from US$0.10 to US$0.25 per share. In 2020, the company paid out a special dividend of US$0.25 per share. In 2021, the company declared a special dividend of US$0.20 per share.
Dividend Yield
The dividend yield is a measure of how much a company is paying out in dividends relative to its share price. A high dividend yield indicates that the company is paying out a high proportion of its profits to shareholders, while a low dividend yield indicates that the company is not paying out much of its profits to shareholders. BP's dividend yield has fluctuated over the years, reaching a high of over 6% in 2020, and a low of just over 3% in 2019.
The dividend yield is an important measure of a company's financial health and performance, and it can be a useful indicator for investors. A high dividend yield indicates that the company is paying out a substantial portion of its profits to shareholders, which is a sign of financial strength. Conversely, a low dividend yield indicates that the company is not paying out much of its profits to shareholders, which could be a sign of financial weakness.
Dividend Growth
BP's dividend has grown steadily over the years, and the company has increased its dividend payouts in each of the last five years. In 2020, the company increased its dividend by 8%, while in 2021 it increased its dividend by 5%. The company has also recently announced plans to increase its dividend by an additional 5% in 2022. This steady increase in the dividend payouts is a sign of the company's financial strength and stability.
Conclusion
BP's dividend history shows that the company has a long history of paying out dividends to its shareholders. The company's dividend yield has fluctuated over the years, but has generally remained stable. The company has also been increasing its dividend payouts in each of the last five years, which is a sign of financial strength and stability. For investors looking for a reliable dividend paying stock, BP may be a good option.