BP

Website: BP
Index: FTSE 100
EPIC: BP.
Supersector: Energy
Sector: Oil: Crude Producers
Subsector: Integrated Oil and Gas
Market Cap: £81.21B
Payout Frequency: Quarterly

BP Dividend Analysis and Summary

Key Dividend Details

Dividend declared: 8.320 cents per ordinary share (Q1 2026 interim)
Ex-dividend date (ordinary shares): 14/05/2026
Record date: 15/05/2026
Payment date: 26/06/2026
ADS amount: $0.4992 per ADS; ADS ex-dividend date 15/05/2026
Currency: Sterling equivalent to be announced on 09/06/2026 (FX averaged 3–5 June)
Scrip: No scrip for this dividend; DRIP available
Policy: Company reiterates expectation to grow the dividend by at least 4% per share per year (board discretion applies)
Trend: Flat q/q (8.320c vs 8.320c in Q4 2025); up ~4% y/y (vs 8.000c in Q1 2025)

Support and Sustainability

Earnings cover: Underlying RC profit per share 20.67c vs dividend 8.32c (~2.5x cover).
Cash flow cover: Operating cash flow $2.9bn after a sizeable $6.0bn working-capital build. On an adjusted basis (ex-WC), underlying OCF was robust, comfortably covering the c.$1.28bn quarterly cash dividend to shareholders.
Capex and balance sheet: Q1 capex $3.29bn; 2026 guidance $13–13.5bn. Net debt rose to $25.3bn (gearing 24.7%) but management reiterates a $14–18bn net debt target by end-2027 and an ‘A’-range credit ambition.
Capital returns stance: Dividend remains first priority within the financial frame; modest buybacks continued (74m shares settled in Q1 for c.$450m), secondary to the dividend.

Growth Trajectory and Policy Backing

Policy reaffirmed: Commitment to at least 4% annual DPS growth maintained; Q1 payout aligns with this path.
Operating backdrop: Strong reliability (upstream 95.7%, refining 96.3%) and an “exceptional” oil trading contribution supported Q1 results; however, Q2 guidance flags lower upstream production and softer midstream.
Cash levers: Significant 2026 divestment proceeds guided at $9–10bn (including $6bn from Castrol), and hybrid redemptions should lower financing outflows over time—both supportive of dividend capacity.

Structural Changes and Implications

Castrol transaction: Agreed sale of 65% of Castrol (c.$6bn proceeds), completion targeted by end-2026. BP retains 35% but does not expect to recognize income/dividends from the investment in the short to medium term—near-term headwind to earnings, partially offset by lower D&A and portfolio simplification. Proceeds bolster balance sheet and fund capital returns.
Gelsenkirchen refinery sale: Agreed divestment; completion expected H2 2026. Supports portfolio simplification and lifts structural cost-reduction target by $1bn to $6.5–7.5bn by 2027—potentially improving dividend resilience longer term, though it may trim refining earnings near term.
Hybrid capital reduction: Planned redemption of €2.5bn hybrids in Q2 2026 (and a further £1.25bn in 2027), moving the perpetual hybrid stack toward ~$9bn by end-2027. Reduces future hybrid coupons and supports a more efficient capital structure, indirectly underpinning equity dividends.

Risks and Flags

Commodity and macro volatility: Middle East disruptions, price lags/caps, and refining margin sensitivity could pressure earnings and working capital swings quarter-to-quarter.
Guidance headwinds: Q2 2026 expected lower upstream production and potentially weaker midstream; turnaround activity may reduce refining throughput.
Cash commitments: 2026 Gulf of America settlement payments around $1.6bn pre-tax; elevated capex; net debt ticked up q/q—deleveraging progress and WC normalization are watch items.
Divestment execution: Timing/approvals for Castrol and Gelsenkirchen closures matter; the loss of Castrol’s consolidated earnings and absence of near-term income from the retained stake are a modest drag on dividend headroom, albeit offset by proceeds and cost savings.
Tax rate sensitivity: Underlying ETR guided at ~40% for 2026, sensitive to price environment and geography of profits.

BP Annual Dividend Yield - 2.41%

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
19/02/2026	27/03/2026	Q4	8.32¢	USX
14/05/2026	26/06/2026	Q1	8.32¢	USX

Total (Annual Dividends Per Share): 12.38p (Using exchange rate on 15/06/2026 $ = £0.74399)

Dividend Yield = Annual Dividends Per Share (12.38p) ÷ Share Price (513.4p) = 2.41%

Ex Dividend Date	Payment Date	Type	Amount	Currency
14/05/2026	26/06/2026	Q1	8.32¢	USX
19/02/2026	27/03/2026	Q4	8.32¢	USX
13/11/2025	19/12/2025	Q3	8.32¢	USX
14/08/2025	19/09/2025	Q2	8.32¢	USX
15/05/2025	27/06/2025	Q1	8.00¢	USX
20/02/2025	28/03/2025	Q4	8.00¢	USX
07/11/2024	20/12/2024	Q3	8.00¢	USX
08/08/2024	20/09/2024	Q2	8.00¢	USX
16/05/2024	28/06/2024	Q1	7.27¢	USX
15/02/2024	28/03/2024	Q4	7.27¢	USX
09/11/2023	19/12/2023	Q3	7.27¢	USX
10/08/2023	22/09/2023	Q2	7.27¢	USX
11/05/2023	23/06/2023	Q1	6.61¢	USX
16/02/2023	31/03/2023	Q4	6.61¢	USX
10/11/2022	16/12/2022	Q3	6.01¢	USX
11/08/2022	23/09/2022	Q2	6.01¢	USX
12/05/2022	24/06/2022	Q1	5.46¢	USX
17/02/2022	25/03/2022	Q4	5.46¢	USX
11/11/2021	17/12/2021	Q3	5.46¢	USX
12/08/2021	24/09/2021	Q2	5.46¢	USX
06/05/2021	18/06/2021	Q1	5.25¢	USX
18/02/2021	26/03/2021	Q4	5.25¢	USX
05/11/2020	18/12/2020	Q3	5.25¢	USX
13/08/2020	25/09/2020	Q2	5.25¢	USX
07/05/2020	19/06/2020	Q1	10.50¢	USX
13/02/2020	27/03/2020	Q4	10.50¢	USX
07/11/2019	20/12/2019	Q3	10.25¢	USX
08/08/2019	20/09/2019	Q2	10.25¢	USX
09/05/2019	21/06/2019	Q1	10.25¢	USX
14/02/2019	29/03/2019	Q4	10.25¢	USX
08/11/2018	21/12/2018	Q3	10.25¢	USX
09/08/2018	21/09/2018	Q2	10.25¢	USX
10/05/2018	22/06/2018	Q1	10.00¢	USX
15/02/2018	29/03/2018	Q4	10.00¢	USX
09/11/2017	21/12/2017	Q3	10.00¢	USX
10/08/2017	22/09/2017	Q2	10.00¢	USX
11/05/2017	23/06/2017	Q1	10.00¢	USX
16/02/2017	31/03/2017	Q4	10.00¢	USX
10/11/2016	16/12/2016	Q3	10.00¢	USX
04/08/2016	16/09/2016	Q2	10.00¢	USX
05/05/2016	17/06/2016	Q1	10.00¢	USX
11/02/2016	24/03/2016	Q4	10.00¢	USX
05/11/2015	18/12/2015	Q3	10.00¢	USX
06/08/2015	18/09/2015	Q2	10.00¢	USX
07/05/2015	19/06/2015	Q1	10.00¢	USX
12/02/2015	27/03/2015	Q4	10.00¢	USX
06/11/2014	19/12/2014	Q3	10.00¢	USX
06/08/2014	19/09/2014	Q2	9.75¢	USX
07/05/2014	20/06/2014	Q1	9.75¢	USX
12/02/2014	28/03/2014	Q4	9.50¢	USX
06/11/2013	20/12/2013	Q3	9.50¢	USX
07/08/2013	20/09/2013	Q2	9.00¢	USX
08/05/2013	21/06/2013	Q1	9.00¢	USX

Year	Currency	Total	Change
2024	USX	30.540	10.010
2023	USX	27.760	21.010
2022	USX	22.940	7.090
2021	USX	21.420	-32.000
2020	USX	31.500	-23.170
2019	USX	41.000	1.230
2018	USX	40.500	1.250
2017	USX	40.000	0.000
2016	USX	40.000	0.000
2015	USX	40.000	2.560
2014	USX	39.000	41.810
2013	USX	27.500

BP Dividend Calculator

Number of Shares:

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