BP Lifts Dividend by 12.5%

LONDON -- The shares of BP (LSE: BP.L  ) (NYSE: BP  ) jumped 15 pence, or 4%, to 440 pence in early London trade this morning after the oil group lifted its quarterly dividend by 12.5%.

The FTSE 100 member said its third-quarter payout had been raised to $0.09 per share. BP's dividend had previously been running at $0.08 per quarter this year, and $0.07 per quarter during 2011.

At a an exchange rate of 1 pound to $1.60, a $0.09 per share per quarter payout could mean the annualized dividend may be around 22.5 pence per share. For context, BP's full-year payout was approximately 35 pence per share prior to the Gulf of Mexico oil spill. The spill prompted BP to suspend the payout for nine months during 2010.

Today's dividend news from BP accompanied third-quarter results that showed an underlying replacement cost profit of $5.2 billion. The performance compared with a $3.7 billion figure for the second quarter and a $5.5 billion result from the third quarter of 2011.

Production during July, August, and September came to 2.26 million barrels of oil a day. Operating cash flow for the quarter was $6.3 billion, while net debt now stands at $32 billion.

BP's chief executive, Bob Dudley, said: 

BP's performance and the strong progress we are making in transforming the company give us the confidence to increase distributions to our shareholders. We are on track with our strategy to 2014 and are laying the right foundations for sustainable growth during the coming decade.

Based on today's lifted dividend, BP's shares currently offer a potential 5.1% income Indeed, the company is just one of a number of FTSE large caps that offers a dividend yield well ahead of what you can expect to receive from a standard savings account.

For further high-dividend possibilities, this special Motley Fool report -- "8 Popular Dividend Shares Held By Britain's Super Investor" -- reveals the favorite yield stocks held by market-beating City stock-picker Neil Woodford. The report, which also explains the logic behind Woodford's decisions, is free to download today and comes with no further obligation.

Are you looking to profit as a long-term investor? "10 Steps to Making a Million in the Market" is the latest Motley Fool guide to help Britain invest. Better. We urge you to read the report today -- while it's still free and available.

Further Motley Fool investment opportunities:

Maynard Paton does not own shares of any company mentioned. The Motley Fool does not own shares of any company mentioned. The Motley Fool has a disclosure policy.
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2084040, ~/Articles/ArticleHandler.aspx, 10/23/2016 2:28:32 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
BP $36.25 Up +0.20 +0.55%
BP CAPS Rating: ****