April 11, 2025 a 03:31 pm
COP: Dividend Analysis - ConocoPhillips
ConocoPhillips demonstrates a robust dividend profile with consistent growth in payouts. Its strong market position is buttressed by a reliable dividend history and a solid financial base, signifying potential for steady income for investors.
📊 Overview
Analyzing the dividend profile of ConocoPhillips reveals its significance within the Energy sector. With a dividend yield of 3.24%, it's positioned to attract income-focused investors. Holding a reliable dividend history of 44 years, it reinforces its capability in providing consistent shareholder returns.
| Key Aspect | Detail |
|---|---|
| Sector | Energy |
| Dividend yield | 3.24 % |
| Current dividend per share | 3.09 USD |
| Dividend history | 44 years |
| Last cut or suspension | None |
🗣️ Dividend History
Historically, ConocoPhillips has shown stability in its dividend payouts, a crucial aspect for evaluating long-term investment reliability. This record not only reflects its financial resilience but also impacts investor confidence.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.78 |
| 2024 | 3.12 |
| 2023 | 3.91 |
| 2022 | 4.99 |
| 2021 | 1.95 |
📈 Dividend Growth
Dividend growth is critical in assessing a company's future payout potential. ConocoPhillips shows moderate growth in dividends over the past few years, enhancing its attractiveness to growth-oriented dividend investors.
| Time | Growth |
|---|---|
| 3 years | 16.96 % |
| 5 years | 18.50 % |
The average dividend growth is 18.50% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
A keen look at payout ratios provides insights into sustainability and profit allocation. ConocoPhillips boasts a reasonable EPS-based payout ratio of 39.14%, indicating ample room for future dividend hikes without stretching its earnings.
| Key figure | Ratio |
|---|---|
| EPS-based | 39.14 % |
| Free cash flow-based | 48.83 % |
The EPS-based payout ratio of 39.14% and FCF-based ratio of 48.83% reflects a disciplined financial strategy ensuring dividend sustainability.
✅ Cashflow & Capital Efficiency
Evaluating cash flow and efficiency metrics gives a deeper understanding of a company's financial health and reinvestment power. Notably, its Free Cash Flow Yield stands at 7.62%, a green flag for capital reinvestment potentials and shareholder returns.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 6.85 % | 6.24 % | 12.08 % |
| Earnings Yield | 7.91 % | 7.85 % | 12.43 % |
| CAPEX to Operating Cash Flow | 60.22 % | 56.34 % | 35.88 % |
| Stock-based Compensation to Revenue | - | 0 % | 0.48 % |
| Free Cash Flow / Operating Cash Flow Ratio | 39.78 % | 43.66 % | 64.12 % |
The company maintains a cache of reliable cash flow, which is indicative of robust capital management practices aiding its sustainability.
⚠️ Balance Sheet & Leverage Analysis
Exploring balance sheet ratios helps assess financial fortitude. ConocoPhillips displays a balanced debt profile, with a Debt-to-Equity ratio of 17.20, which ensures manageable leverage.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 17.20 | 0.40 | 0.35 |
| Debt-to-Assets | 19.81 % | 20.47 % | 17.74 % |
| Debt-to-Capital | 94.51 % | 28.49 % | 25.74 % |
| Net Debt to EBITDA | 0.77 | 0.54 | 0.27 |
| Current Ratio | 1.29 | 1.43 | 1.46 |
| Quick Ratio | 1.14 | 1.29 | 1.36 |
Strong liquidity ratios underpin its effort to maintain short-term financial obligations while ensuring long-term sustainability.
📊 Fundamental Strength & Profitability
Robust fundamentals often dictate a company's long-term growth trajectory. ConocoPhillips boasts impressive profit margin levels up to 23.80%, a testament to its operational efficiency and strategic market positioning.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 6.54 | 22.23 % | 38.91 % |
| Return on Assets | 7.53 % | 11.42 % | 19.91 % |
| Margins: Net | 16.23 % | 18.94 % | 23.80 % |
| EBIT Margin | 25.95 % | 29.98 % | 37.31 % |
| Research & Development to Revenue | 0 | 0.14 % | 0.09 % |
The company's strong profitability metrics with consistent returns amplify its operational effectiveness and future growth potential.
✅ Price Development
Dividend Scoring System
| Category | Score | Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 36/40
Rating
ConocoPhillips earns a strong rating based on its impressive dividend history, financial stability, and growth potential. With a high score in most dividend categories, it stands out as a commendable dividend choice in the energy sector, backed by reliable and sustainable practices.