05-29-2013, 08:32 PM
Depends how strict you want to be, bobbyboy. Technically, COP did not raise the dividend in 2012. Total dividends in 2011 were $2.64, and total dividends in 2012 were $2.64. As I mentioned earlier, personally, I am considering COP's dividend growth streak to be alive and well through 2012 because they paid out $2.64 despite spinning off a huge chunk of the company (PSX). Relative to the now smaller COP that remained (with its smaller asset and earnings base), the $2.64 in dividends in 2012 was bigger than the $2.64 in 2011.
Now, if they do not raise the dividend in 2013, it becomes much harder to defend the streak. Some might argue that the spinoff was so major and accounted for such a large potion of revenues and earnings that COP should be given credit for more than one year of dividend increases, and hence be given a pass in 2013 as well. Other might argue that if you held COP before the spinoff (as I did), you sum your dividends from COP and PSX to see if the streak is still alive, since the income from your initial investment is still growing. That is a bit of a stretch for me, but I see the logic. Finally, still others might shrug and say that yes, COP's streak is over, but it is nonetheless a great company with a solid yield so it is still worth holding onto. I fall into this latter camp.
Who knows, perhaps we'll get a divvy raise in 2013 after all. If not, I'll continue to monitor and decide what to do down the road.
Now, if they do not raise the dividend in 2013, it becomes much harder to defend the streak. Some might argue that the spinoff was so major and accounted for such a large potion of revenues and earnings that COP should be given credit for more than one year of dividend increases, and hence be given a pass in 2013 as well. Other might argue that if you held COP before the spinoff (as I did), you sum your dividends from COP and PSX to see if the streak is still alive, since the income from your initial investment is still growing. That is a bit of a stretch for me, but I see the logic. Finally, still others might shrug and say that yes, COP's streak is over, but it is nonetheless a great company with a solid yield so it is still worth holding onto. I fall into this latter camp.
Who knows, perhaps we'll get a divvy raise in 2013 after all. If not, I'll continue to monitor and decide what to do down the road.