Many investors who want to take a first step into this market might ask themselves which of these names is the more attractive oil dividend bead. An exciting question that should occupy us today. Get ready for another Fool-Check of two pods, let's see who will win here today.
The current dividend yield
We also want to start today with a look at the current dividend yield. ExxonMobil's US residents are currently paying a dividend of $ 0.87 per quarter to investors. At a current price level of $ 70.77 (08.11.2019, relevant to all prices), this would equate to a dividend yield of 4.91% per annum. Definitely an exciting value, let's see what BP currently has to offer here.
The British are currently paying a dividend of $ 0.1025 per share per quarter to investors. However, as the current price level is also significantly lower here at 5.90 euros, the British oil company has a dividend yield of 6.28%. At this point, BP can clearly score points. But, little spoiler, in dividend growth and consistency that may not be so.
Constancy and growth in view
As we can see at this point, ExxonMobil is definitely among the numbers with a truly impressive dividend history. For more than 100 years, Americans have been paying dividends to investors every year. In addition, over the past 37 years, the dividend has been raised year after year, making ExxonMobil a member of the dividend aristocrats for a dozen years. Definitely interesting.
In addition, over the past 20 years, the dividend per share more than quadrupled from $ 0.84 in 1999 to its current level of $ 3.48 per annum. Dividend growth is also definitely correct here from a historical perspective.
A little different is the current situation at BP. Although the British oil company also comes to a run of nine years of unabridged dividends, which have even been raised moderately. Nonetheless, the "Deep Water Horizon" oil spill has led to a break in previous dividend policy, from which the British are now recovering. With the first nine years of constant payments, a major restart has begun here, nonetheless this point definitely goes to ExxonMobil for its outstanding dividend history.
The payout ratio
Now that we have finished off two points of view and have formally arrived at a stalemate, today's decision is probably the last point: the current payout ratio. In any event, ExxonMobil returned earnings per share of $ 4.88 last fiscal year, bringing its current payout ratio to 71.3%. A high, shareholder-friendly value for a dividend aristocrat, which still leaves room for further moderate increases.
By contrast, BP returned to earnings per share of £ 0.35 in the last fiscal year of 2018, which would equal US $ 0.447. With a payout ratio of 91.7%, BP is currently at the limit, so we definitely have a winner today.
The winner is called …
As we can see on the bottom line, ExxonMobil had indeed the disadvantage in the current dividend yield, but there is more room for maneuver here at the current payout ratio. In addition, Americans have the much more reliable and growing dividend history.
However, BP could also have earned a look as an interesting second. Although the history has been neatly destroyed by Deep Water Horizon, nonetheless, the company is now working on a turnaround in terms of consistency. Possibly the BP share with its more than 6% dividend yield and the exciting approaches is also a reliable dividend bead of tomorrow.
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Vincent has none of the shares mentioned. The Motley Fool does not own any of the stocks mentioned.
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