March 09, 2026 a 07:31 am
COP: Dividend Analysis - ConocoPhillips
ConocoPhillips demonstrates a robust dividend history, marked by 45 years of consistent payments. While recent years have shown fluctuations, the company's current dividend yield of 2.93% positions it as a moderate income investment. With cuts or suspensions notably absent in recent history, the security of its dividend distribution is appealing to risk-averse shareholders. Careful attention to payout ratios highlights financial prudence, reinforcing its credibility as a dividend payer.
📊 Overview
| Sector | Dividend Yield | Current Dividend per Share | Dividend History | Last Cut or Suspension |
|---|---|---|---|---|
| Energy | 2.93% | $3.34 USD | 45 years | None |
📈 Dividend History
The dividend history of ConocoPhillips highlights a long-term commitment to shareholder returns, with consistency being key. Understanding this history provides insight into financial resilience and management's prioritization of shareholder distributions.
| Year | Dividend per Share |
|---|---|
| 2026 | $0.84 |
| 2025 | $3.18 |
| 2024 | $3.12 |
| 2023 | $3.91 |
| 2022 | $4.99 |
📈 Dividend Growth
Dividend growth reflects a company's capacity to amplify shareholder returns over time, indicating operational success and profitability.
| Time | Growth |
|---|---|
| 3 years | -13.94% |
| 5 years | 13.48% |
The average dividend growth is 13.48% over 5 years. This shows moderate but steady dividend growth despite recent declines.
🗣️ Payout Ratio
Payout ratios signify the proportion of earnings distributed to shareholders via dividends, providing insights into dividend sustainability.
| Key Figure | Ratio |
|---|---|
| EPS-based | 50.11% |
| Free cash flow-based | 24.33% |
With an EPS payout ratio of 50.11% and an FCF ratio of 24.33%, ConocoPhillips commands a stable position, maintaining shareholder returns while retaining earnings for future growth and financial flexibility.
⚙️ Cashflow & Capital Efficiency
Evaluating cash flow and capital efficiency reveals the firm's ability to generate returns on its investments and maintain operational liquidity.
| Year | Free Cash Flow Yield | Earnings Yield | CAPEX to Operating Cash Flow | Stock-based Compensation to Revenue | Free Cash Flow / Operating Cash Flow Ratio | Return on Invested Capital |
|---|---|---|---|---|---|---|
| 2025 | 14.97% | 7.08% | 15.27% | 0% | 84.73% | 6.86% |
| 2024 | 6.85% | 7.88% | 60.22% | 0% | 39.78% | 7.72% |
| 2023 | 6.24% | 7.82% | 56.34% | 0% | 43.66% | 11.60% |
These metrics affirm a solid cash flow scenario. A consistent Return on Invested Capital demonstrates effective resource utilization, vital for investor confidence.
💼 Balance Sheet & Leverage Analysis
The balance sheet examination provides an understanding of leverage and liquidity, crucial to assessing financial health and resilience to economic shifts.
| Year | Debt-to-Equity | Debt-to-Assets | Debt-to-Capital | Net Debt to EBITDA | Current Ratio | Quick Ratio | Financial Leverage |
|---|---|---|---|---|---|---|---|
| 2025 | 0.36 | 0.19 | 0.27 | 0.68 | 1.297 | 1.141 | 1.891 |
| 2024 | 0.39 | 0.21 | 0.28 | 0.81 | 1.291 | 1.141 | 1.895 |
| 2023 | 0.40 | 0.20 | 0.28 | 0.54 | 1.432 | 1.293 | 1.947 |
Leverage ratios within manageable limits coupled with robust liquidity ratios indicate ConocoPhillips' adeptness at managing its financial obligations efficiently.
🔍 Fundamental Strength & Profitability
Profitability metrics are essential for recognizing operational efficiency and assessing whether the financial strategies align with shareholder value maximization.
| Year | Return on Equity | Return on Assets | Net Margin | EBIT Margin | EBITDA Margin | Gross Margin | R&D to Revenue |
|---|---|---|---|---|---|---|---|
| 2025 | 12.30% | 6.50% | 13.29% | 22.88% | 41.97% | 35.15% | 0% |
| 2024 | 14.23% | 7.51% | 16.88% | 27.06% | 44.72% | 29.35% | 0.15% |
| 2023 | 22.16% | 11.39% | 19.45% | 30.91% | 45.93% | 32.42% | 0% |
With strong profitability metrics, the company ensures shareholder value through efficient capital deployment and competitive operational strategies.
📉 Price Development
✅ Dividend Scoring System
| Category | Score | Representation |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40
🗣️ Rating
ConocoPhillips offers a compelling investment choice for income investors seeking a balanced blend of stability and moderate growth potential. Its well-managed payout ratios and firm financial foundations cultivate confidence in its ongoing ability to deliver reliable dividend yields. While the recent dividend growth has tempered slightly, the company's enduring commitment to shareholder engagement remains evident through its strategic financial management and robust capital allocation efficiency.