Notes And Comment -- Late Night Edition -- Dividends -- April 15, 2021

OKE: According to MarketBeat today, OKE declared its next quarterly dividend, no change from previous declaration: 93.50 cents, record date, 4/26/21; pay date, 5/14/21. This would be the sixth consecutive quarter without a change in the dividend. 

• 4 x 93.5 = $3.74 / 52.39 = 7.14%.
• Back in September, 2020, OKE traded for $25. $3.74 / $25 = 15%. 

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Speaking of Dividends

BP: some months ago, BP cut its dividend in half. To the best of my knowledge, BP did not have a 2 -1 split.

So, let's do a little gedanken experiment.

First, BP. You are a member of the board. You need to vote / opine on the next quarterly dividend. You recommend cutting it in half. At the time you made the recommendation, the annual rate would equate to 5%. You recommend keeping the dividend the same.

Now, OKE. You are a member of the board. You need to vote / opine on the next quarterly dividend. You recommend keeping it the same. At the time you make this recommendation, the annual rate would equate to 15%. One would think that would be a hard recommendation to defend. 

Something to think about.

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Pivot To Renewable Energy

For newbies, a reminder: BP is pivoting to renewable energy, a low margin enterprise. 

See this note. 

TOT: second consecutive quarter that Total cut its dividend. Total is also pivoting to renewable energy, a low margin business.  

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Flathead Lake, MT