27 years of stable dividends in the wild world of energy

In our analysis today, we take a closer look at a company that has maintained remarkable consistency in its dividend payout. For 27 years, it has regularly returned a portion of its earnings to shareholders, with its current quarterly dividend of $0.975 per share, equivalent to an annual payout of $3.90. At the current share price, this represents an attractive dividend yield of around 3.6%, complemented by a payout ratio of around 36%, suggesting a balance between rewarding investors and maintaining financial flexibility for future growth.

The company also demonstrates a disciplined approach to financial management and maintains a strong balance sheet that allows it to pay a dividend even in less favourable commodity price periods. In addition to dividends, it has a share buyback programme which further enhances shareholder value. It plans to increase its buyback volume by USD 5 billion in 2025, with a total target of returning more than 85% of free cash flow, confirming its…