ConocoPhillipsCOP announced a quarterly dividend of 30.5 cents per share, up 7% from 28.5 cents on a sequential basis. The uptick marks the second hike by the company in the current year.
The dividend is payable on Dec 3, 2018, to stockholders of record at the close of business as of Oct 15, 2018. The first hike was announced in February, when ConocoPhillips declared a dividend of 28.5 cents a share, up 7.5% from the previous payout of 26.5 cents.
ConocoPhillips has a dividend yield of 1.5% and returned more than 60% in the past year, helped by rising energy prices.
In July 2018, the board of directors approved 50% increase in share repurchase program for 2018 to $3 billion from $2 billion. In 2018, the company will have sufficient cash from operations to fund the program along with dividend and capital expenditures.
ConocoPhillips also stated that it has reduced debt by $2.1 billion during the second quarter and has attained declared debt target of $15 billion before the original target date of 2019 end.
These initiatives emphasize the company's commitment toward boosting shareholders' value. It also highlights the fact that the company projects upside potential in shares. As the company achieved the target of meeting debt before the projected date, it can focus on channeling cash flow toward business growth and maintain efficiency in operations.
As oil and gas prices continue to recover, several oil giants have raised their dividend in 2018, which is intended to increase shareholders' value. Some of these companies are Cimarex Energy XEC , Kinder Morgan Inc KMI and Anadarko Petroleum Corporation APC .
In the past year, ConocoPhillips' shares have surged 60.2% compared with the industry 's 39.2% rally.
ConocoPhillips currently carries a Zacks Rank #3 (Hold). You can see see the complete list of today's Zacks #1 Rank stocks here .
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportKinder Morgan, Inc. (KMI): Free Stock Analysis ReportCimarex Energy Co (XEC): Free Stock Analysis ReportAnadarko Petroleum Corporation (APC): Free Stock Analysis ReportConocoPhillips (COP): Free Stock Analysis ReportTo read this article on Zacks.com click here.