This 38% Dividend Hike Is No Joke

Whenever a non-dividend-paying stock sets up a regular dividend policy, it is considered very, very good news. And that’s also why, whenever a company increases its dividend, even by just one or two percent, it deserves income investors’ attention. The idea is, those dividend hikes are not meant to apply to just one payment. Rather, they are more like pay raises that apply to shareholders’ future dividend income. So what if a company delivers not just a one or two percent increase, but a whopping 38% dividend hike? Well, I’d say it deserves a serious look.

The company in question is ConocoPhillips (NYSE:COP), a multinational energy corporation headquartered in Houston. The company has operations in 17 countries around the world. Last year, it produced almost 1.3 million barrels of oil equivalent per day. With proved reserves of 5.3 billion barrels of oil equivalent at the end of 2018, ConocoPhillips is one of the biggest players in the exploration and production (E&P) business. The company also takes its dividends very seriously. According to its latest investor update, ConocoPhillips’ No. 1 priority is to “invest capital to sustain production and pay existing dividend,” and its second priority is “annual dividend growth.”

Source: Income Investors

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