ConocoPhillips Company is an American multinational energy corporation headquartered in Texas. It is the fifth largest private energy company in the world and was created by the merger of Conoco Inc and Phillips Petroleum Company on August 30, 2002. The company ConocoPhillips employs approximately 29,600 people worldwide in nearly 40 countries. ConocoPhillips is the second-largest refinery in the United States and the fourth-largest privately owned refinery in the world. The company operates in all sectors of the oil and natural gas industry: exploration, production, midstream, refining, marketing and petrochemicals.
COP offers a long term performance generous at 3.36%, the current yield being even more so, at 4%. The price/earnings ratio confirms this attractive valuation, at only 8.50. Dividends are growing at a sustained annual rate of 12,38% (moyenne des quatre dernières années). Les versement ont pu être augmentés durant dix années consécutives, ce qui est bien, mais peu en rapport aux autres titres de notre portfolio. Le distribution ratio est quant à lui très prudent, avec 31.92%, ce qui laisse une bonne marge à la société pour continuer à augmenter son dividende dans le futur, même en cas de passage difficile.
Ces fondamentaux intéressants sont malheureusement ternis par un risque élevé, avec une volatility de 22.13% et un beta de 1.16, ce qui est bien plus que les titres qui composent notre portfolio et même plus que le marché. Le titre a tendance à sous-performer le S&P sur le long terme, ce qui explique en partie sa valorisation attractive. Par contre, durant la "décennie perdue", COP s'est autorisé une jolie performance.
COP offers good protection against dollar fluctuations.
COP offers a generous and rapidly growing yield. However, the youth of its successive distribution increases, as well as the stock's high volatility, mean that we remain on the sidelines of COP for the time being.
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How do you view the upcoming spin-off? Conoco Phillips will keep its Exploration and Production division and divest all Downstream activities. With the proceeds of the sale, it plans to buy back shares and increase its dividend.
It all depends on what they do with it. Hopefully it won't be in the form of a special dividend. The most important thing is that COP can maintain its sustained rate of growth in its distributions over the long term.