BP

Website: BP
Index: FTSE 100
EPIC: BP.
Supersector: Energy
Sector: Oil: Crude Producers
Subsector: Integrated Oil and Gas
Market Cap: £86.68B
Payout Frequency: Quarterly

BP Dividend Analysis and Summary

Key Dividend Details

Dividend per ordinary share: 8.320 cents (Q4 2025 interim)
Ex-dividend date (ordinary shares): 19/02/2026
Record date: 20/02/2026
Payment date: 27/03/2026
ADS dividend: $0.4992 per ADS; ADS ex-dividend date: 20/02/2026
Sterling amount: to be set on 17/03/2026 (based on FX from 11–13/03/2026)
Scrip alternative: Not offered; DRIP: Available (subject to eligibility)
Policy/commentary: Board reiterates priority of a “resilient dividend,” expected to increase by at least 4% per share per year (subject to board discretion)
Full-year dividend trajectory: Announced FY25 dividend per share of 32.960 cents vs 31.270 cents in FY24 (c. +5.4%)

Dividend Sustainability and Coverage

Cash flow cover: FY25 operating cash flow of $24.5bn vs dividends paid of $5.06bn implies strong cash coverage.
Earnings cover: Underlying RC profit per share of 48.02c vs FY announced DPS of 32.96c (~1.5x cover).
Balance sheet: Net debt reduced to $22.2bn in Q4 (target $14–18bn by end-2027); buybacks suspended to allocate excess cash to deleveraging—supportive for dividend resilience.
Capital discipline: 2026 capex trimmed to $13–13.5bn; structural cost reduction target raised to $5.5–6.5bn by end-2027—both supportive of free cash flow.

Dividend Growth Outlook

Q4 DPS increase of 4.0% vs Q4 2024 aligns with the “at least 4% p.a.” growth framework.
Despite weaker headline earnings due to non-cash impairments, underlying profitability and cash generation remain robust, providing scope to maintain the targeted growth cadence.
Suspension of buybacks removes a competing claim on cash while balance sheet is strengthened, improving dividend security in the near term.

Financial and Capital Allocation Backdrop

Underlying performance: FY25 underlying RC profit $7.5bn; adjusted EBITDA $37.6bn; OCF $24.5bn (with working capital build).
Distribution framework update: Prior 30–40% of OCF distribution guidance retired; explicit emphasis on resilient, growing dividend and balance sheet strengthening.
Leverage and liquidity: Net debt trending down; hybrid instruments remain a cash call (coupon), but overall liquidity supports distributions.

Structural Changes and Potential Impacts on Future Dividends

Buybacks suspended: All excess cash redirected to deleveraging—neutral-to-positive for dividend safety; removes per-share accretion from buybacks near term.
Castrol divestment (65% stake): Expected ~$6bn proceeds by end-2026; bp retains 35% JV stake but does not expect to recognize income/dividends in the short-to-medium term due to preferred distributions to the new majority owner. Near-term earnings headwind in “customers,” but cash proceeds bolster balance sheet and dividend capacity.
Portfolio high-grading/divestments: Ongoing $20bn disposal programme; Netherlands retail and US onshore wind already sold. These streamline operations and reduce capital needs, supporting dividend sustainability.
Capex reset and cost-out: Lower 2026 capex and increased structural cost reduction target are supportive of free cash flow available for dividends.

Risks and Flags to Dividend Stability

Commodity price sensitivity: Lower liquids realizations and an “average” trading result highlight exposure to macro volatility.
Impairments in transition assets: Significant Q4 impairments (e.g., Lightsource bp, Archaea, offshore wind) point to execution/return risks in low carbon; non-cash, but may signal weaker future earnings from those areas.
Regulatory/tax headwinds: Continued impact of UK Energy Profits Levy (extended to 2030) and tax changes (e.g., Germany) can dampen after-tax cash flows.
Legacy obligations: Gulf of America settlement payments guided at ~$1.6bn pre-tax in 2026—manageable but a recurring cash outflow.
Divestment earnings drag: Management notes completed/announced disposals will partly offset customers business growth; some near-term earnings dilution until portfolio rebalanced.
FX risk for UK holders: DPS declared in USD; sterling receipts vary with FX at fixing date.

BP Annual Dividend Yield - 4.4%

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
20/02/2025	28/03/2025	Q4	8.00¢	USX
15/05/2025	27/06/2025	Q1	8.00¢	USX
14/08/2025	19/09/2025	Q2	8.32¢	USX
13/11/2025	19/12/2025	Q3	8.32¢	USX

Total (Annual Dividends Per Share): 24.46p (Using exchange rate on 17/03/2026 $ = £0.74946)

Dividend Yield = Annual Dividends Per Share (24.46p) ÷ Share Price (555.8p) = 4.4%

Ex Dividend Date	Payment Date	Type	Amount	Currency
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:

Payment	Paid	Amount
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