ADVFN - Advanced Financial Network.
HOME» LSE » B » BP. Share Price » BP. Share News

Bp Share News

 Bp Share Price
BP. Share Price
 Bp Share Chart
BP. Share Chart
 Bp Share News
BP. Share News
 Bp Company Information
BP. Company Information
 Bp Share Trades
BP. Share Trades
 Bp Share Message Board
BP. Share Message Board

Exxon Mobil Seen Sharply Boosting Dividend This Month

(This article was originally published Tuesday.) --Analysts expect Exxon to increase its quarterly dividend by 10% to 33% --The move would bring the oil giant closer to rivals' cash distribution --Over the past three decades, company has opted for conservative, but steady dividend increases By Isabel Ordonez Of DOW JONES NEWSWIRES HOUSTON -(Dow Jones)- Exxon Mobil Corp. (XOM) is expected to next week unveil a higher-than-average dividend increase, pleasing investors who have long urged the company to bring its cash distribution closer to its oil-industry competitors. Some analysts forecast Exxon will lift its quarterly dividend, currently at 47 cents per share, by between 10% and 33%. That is a significant jump from the average 6.5% increase over the last decade. "Exxon Mobil is expected to react to increasing pressure from shareholders in recent years to offer a more generous dividend," says Alan Good, an analyst at Morningstar. A sharp spike is expected after Chief Executive Rex Tillerson told analysts at the company's annual meeting in March that Exxon was aware its dividend yield was low compared to its rivals. He added the oil giant was evaluating a possible increase by the end of the second quarter, when the company expects to finish repurchasing the shares issued to acquired natural-gas producer XTO Energy in 2010. Exxon, the world's largest publicly owned oil company, also typically announces its annual dividend increase the last week of April. Exxon is reviewing whether higher oil prices anticipated in the future will be sufficient to allow for a bigger dividend, Tillerson added. Chevron Corp. (CVX), Royal Dutch Shell PLC (RDSA, RDSB, RDSA.LN, RDSB.LN) and BP PLC (BP) all offered a higher dividend yield than Exxon, causing some investors to question Exxon about its preference to spend more in share buybacks than dividends. A sharp dividend increase would be a departure for Exxon, which for three decades has preferred to offer conservative, but constant dividends, despite the ups and downs of the energy markets. By contrast, Shell froze its dividend for two years in 2010 due to the weak economic outlook. Also BP suspended its dividend to pay for the Deepwater Horizon oil spill in the Gulf of Mexico in 2010 Still Exxon's dividend yield, currently at 2.2%, is below Chevron's 3.1%, while Shell and BP's are over 4.5% Analysts don't expect Texas's Exxon Mobil to lift its dividend to a level that will close the gap with rivals, but they do forecast a substantial increment that will soothe investors' woes. Exxon is likely to take "an outright positive action in response to shareholder wishes," Deutsche Bank analyst Paul Sankey said in a note to clients. "Dividend is likely to be stepped up to yield closer to Chevron and within more reasonable distance of Shell and BP." Sankey expects a 33% dividend increase that will take Exxon's annual dividend yield close to 3%. UBS analyst William Featherston forecasts a spike of about 15%, while Argus Research analyst Phil Weiss expects a 10% increment. Exxon Mobil declined comment. Exxon shares rose 1.7% to close at $85.45 Tuesday, and were down 11 cents after hours. A sharp dividend increase is not an easy step for Exxon Mobil because it is a permanent commitment, that unlike share buybacks, can't be cut off without a major backlash from investors, said Fadel Gheit, an analyst with Oppenheimer & Co. The company has to carefully analyze its future cash flow and make sure it has enough money to first finance its huge capital annual expenditure of over $37 billion annually for the foreseeable future even if oil prices collapsed, Gheit said. "Oil is over $100 a barrel today, but nobody can guarantee it will stay there," says Gheit, who said Exxon is likely to increase its dividend by 10%. UBS estimates Exxon Mobil needs WTI crude price of $66 per barrels in order to generate enough cash flow to equal to the company's capital expenditure budget plus a 15% increase in dividend. Light, sweet crude for May delivery on the New York Mercantile Exchange settled up $1.27 a barrel, at $104.20 a barrel, the highest price since April 2. -By Isabel Ordonez, Dow Jones Newswires; 713-547-9207; isabel.ordonez@dowjones.com

Share News for Bp (BP.)
DateTimeHeadline
17/12/201418:49:34European Stocks Buffeted by Oil -- 3rd Update
16/12/201420:44:10Ruble's Decline Deepens Concerns for European Companies
16/12/201418:22:22Shockwaves From Oil Plunge Hit Stocks, Currencies -- 5th Update
15/12/201422:25:27Woodside Slows Progress on Browse LNG Development
15/12/201418:23:59LONDON MARKETS: FTSE 100 Sheds Gains As Oil, Mining Stocks Drop
15/12/201418:23:54LONDON MARKETS: FTSE 100's Sheds Gains As Oil, Mining Stocks...
15/12/201418:01:34LONDON MARKETS: FTSE 100 Gains On Respite For Oil Shares
11/12/201418:03:12LONDON MARKETS: FTSE 100 Logs 4th Straight Losing Day As Miners...
11/12/201415:43:08LONDON MARKETS: FTSE 100 Eyes 4th Straight Losing Day As Miners...
11/12/201409:36:19Wood Group Eyes Earnings Growth Despite Oil Price Slump
11/12/201409:09:17LONDON MARKETS: FTSE 100 Higher As Oil Stocks Advance
10/12/201423:22:51ADR Shares End Lower; Shares of Oil Firms Fall
10/12/201418:19:13LONDON MARKETS: FTSE 100 Turns Lower As Energy Stocks Stung By...
10/12/201414:25:23BP to Book $1 Billion in Restructuring Charges -- 2nd Update
10/12/201410:12:06BP to Book $1 Billion of Restructuring Charges -- Update
10/12/201409:40:17BP to Book $1 Billion of Restructuring Charges
09/12/201421:03:38LONDON MARKETS: Tesco Hits 14-year Low In London After Warning
08/12/201423:58:09Supreme Court Rejects BP Plea to Review Deepwater Horizon Settlement...
08/12/201423:55:35LONDON MARKETS: FTSE 100 Falls As Investors Fret About Global...
08/12/201423:51:32Supreme Court Rejects BP Plea to Review Deepwater Horizon Settlement...

Bp Plc and other London Stock Exchange share prices are delayed by at least 20 minutes.
All other share price data is delayed by at least 15 minutes unless otherwise stated. By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Contact Us | Copyright 1999-2007 ADVFN PLC. | Privacy Policy | Investment Warning | Data accreditations | Investor Relations

ADVFNADVFN ItalyADVFN GermanyADVFN FranceADVFN BrazilADVFN JapanADVFN UKADVFN US noad