InvestorQ : How much dividend is BPCL paying out and is the stock attractive on dividend yield terms?
Anjana Aiyar made post

How much dividend is BPCL paying out and is the stock attractive on dividend yield terms?

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Khushi Patel answered.
2 months ago
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For the latest quarter ended March 2022, BPCL has been fairly liberal with its dividend pay-outs. Along with the fourth quarter results, BPCL also announced a final dividend of Rs6 per share. This is the third dividend declared for the fiscal year FY22 with 2 interim dividends already paid to shareholders. The final dividend of Rs6 per share is subject to the approval of shareholders at the forthcoming AGM of the company.

Before the final dividend announcement, BPCL has already paid two interim dividends of Rs5 each. This takes the total dividend pay-out to shareholders to Rs16 per share for the full year FY22. What does that translate into in terms of dividend yield? On the closing price of Rs322.70 as of the close of 27th May, the dividend yield on BPCL works out to 4.96%. That is fairly attractive, although lower than what BPCL has traditionally commanded.

Net profits for the quarter were sharply lower on account of a sharp compression in marketing margins in the fourth quarter. This is despite the fact that for FY22, the gross refining margins or GRM doubled to $9.09 per barrel. This was more than offset by the loss of marketing margins as the company was forced to keep the selling price static although the cost of crude had risen by more than 80% in the last few months.

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