June 24, 2025 a 07:46 am
COP: Dividend Analysis - ConocoPhillips
ConocoPhillips exhibits strong dividend characteristics, with a consistent dividend history spanning over four decades. The commitment to shareholder returns is evident through a moderate and steady dividend growth, coupled with a robust payout ratio. However, investors should remain vigilant regarding potential industry fluctuations and the company's ability to sustain these returns amidst economic changes.
📊 Overview
The overview of ConocoPhillips’ dividend metrics demonstrates a stable dividend yield coupled with a longstanding history of consistent payouts, without recent cuts or suspensions. This provides investors with a reliable income stream supported by the firm’s steady financial performance.
| Parameter | Details |
|---|---|
| Sector | Energy |
| Dividend Yield | 3.45 % |
| Current Dividend per Share | 3.09 USD |
| Dividend History | 44 years |
| Last Cut or Suspension | None |
📈 Dividend History
The historical dividend payments reflect the company's commitment to providing shareholder returns. A consistent payout provides predictability in income, crucial for income-focused investors, especially in the volatile energy sector.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.56 |
| 2024 | 3.12 |
| 2023 | 3.91 |
| 2022 | 4.99 |
| 2021 | 1.95 |
📈 Dividend Growth
Dividend growth is a key indicator of a firm’s financial health and management’s confidence in future earnings. ConocoPhillips has demonstrated moderate yet consistent growth over the past years, which signifies steady income growth potential.
| 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
Payout ratios provide insight into dividend sustainability. An EPS-based payout ratio of 41.27 % and a Free Cash Flow-based ratio of 32.39 % indicate a balanced approach to dividend payments, suggesting financial prudence.
| Key Figure | Ratio |
|---|---|
| EPS-based | 41.27 % |
| Free cash flow-based | 32.39 % |
The EPS and FCF payout ratios indicate a healthy balance, ensuring that dividend payouts are well-covered by earnings and cash flow.
💰 Cashflow & Capital Efficiency
The cashflow and capital efficiency metrics illustrate the firm's ability to generate and manage cash effectively, ensuring sufficient coverage for dividends and investments.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 6.85 % | 6.24 % | 12.08 % |
| Earnings Yield | 7.91 % | 7.85 % | 12.43 % |
| CAPEX to Op. Cash Flow | 60.22 % | 56.34 % | 35.88 % |
| Stock Comp. to Revenue | 0.14 % | 0.14 % | 0.48 % |
| FCF / OCFR | 39.78 % | 43.66 % | 64.12 % |
These financial metrics underscore robust cash generation capabilities, supporting both operational and strategic initiatives.
🧾 Balance Sheet & Leverage Analysis
The balance sheet and leverage analysis emphasize financial stability and liquidity, crucial for maintaining financial resilience and avoiding excessive leverage.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 37.54 % | 39.84 % | 34.67 % |
| Debt-to-Assets | 19.81 % | 20.47 % | 17.74 % |
| Debt-to-Capital | 27.29 % | 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 |
| Financial Leverage | 1.89 | 1.95 | 1.95 |
ConocoPhillips maintains a balance between debt and equity, demonstrating prudent capital management and financial flexibility.
🔍 Fundamental Strength & Profitability
Fundamental metrics offer insights into the company's profitability and operational efficiency, crucial for long-term financial health and shareholder value.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity (ROE) | 14.27 % | 22.23 % | 38.91 % |
| Return on Assets (ROA) | 7.53 % | 11.42 % | 19.91 % |
| Margins: Net, EBIT, EBITDA, Gross | 16.89%, 26.99%, 44.53%, 29.93% | 18.94%, 29.99%, 44.56%, 48.73% | 23.80%, 37.31%, 47.30%, 38.24% |
| R&D to Revenue | 0.15 % | 0.14 % | 0.09 % |
Strong profitability with impressive return metrics reinforces the company's competitive edge and shareholder value creation.
📉 Price Development
🏆 Dividend Scoring System
| Category | Score | Scale |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 35/40
🏅 Rating
ConocoPhillips presents a robust dividend profile with strong fundamentals, making it an attractive option for income-seeking investors. The consistent dividend history, coupled with stable financial metrics, suggests a strong potential for future dividend sustainability. Recommendation: BUY for steady income growth.